The government has opened the way for businesses and industries to choose their electricity suppliers as Pakistan begins shifting toward a competitive power market.

The Power Division has invited proposals for the country’s first wheeling auction, under which eligible businesses will be able to purchase electricity from power plants through competitive arrangements.

The auction will be conducted under the Competitive Trading Bilateral Contract Market (CTBCM), which is intended to move the electricity sector away from the current single-buyer structure.

The government plans to put 800 megawatts of electricity up for auction over the next five years. The first round will offer 400 megawatts.

The new mechanism will allow participating businesses and industrial consumers to source electricity directly from power producers instead of relying solely on the existing government procurement system.

The first stage will cover large electricity users, with consumers requiring more than 1 megawatt eligible to participate.

The government says the new trading framework will operate on competitive and transparent terms, allowing electricity producers and consumers to negotiate power purchases through the market.

The system is expected to gradually expand beyond large users and develop into a wider electricity market. Under the planned framework, ordinary consumers could eventually have the option to select their electricity supplier.

The shift is also aimed at giving industries access to more competitively priced electricity and improving their ability to compete in international markets.

The first wheeling auction marks an initial step toward introducing greater choice and competition into Pakistan’s electricity buying and selling system.