An Efficient and Competitive Electricity Market Model for Pakistan

Abstract

All over world the electricity market is experiencing restructuring and adopting deregulated industry structure for an efficient and competitive market. In Pakistan the restructuring of power sector started in 1998 with the formation of Pakistan Electric Power Company (PEPCO). In the same year a regulatory authority, National Electric Power Regulatory authority (NEPRA) was put in place. In 2002 the unbundling of power sector occurred and NEPRA issued licenses to 9 distribution companies (DISCOS) and one to National Transmission and Dispatch Company (NTDC) for transmission. However, till now no formal contractual relationship between DISCO and NTDC is present. This paper focuses on development of an electricity trading model in competitive market model by considering all the issues faced by present power traders in Pakistan. Some ideas have been suggested like creation of Power exchange and Independent System Operator (ISO) in Pakistan electricity market to fully deregulate the existing power market of Pakistan.