Competitive Trading Bilateral Contract Market (CTBCM) -by NEPRA

The Competitive Trading Bilateral Contract Market (CTBCM) is a new electricity market framework being developed in Pakistan by the National Electric Power Regulatory Authority (NEPRA).

The key points about CTBCM are

1. It is designed to transition the power sector from a single-buyer model to a competitive bilateral contract market, allowing for open access and competition in electricity procurement.
2. A registered entity will play the role of an Independent Auction Administrator (IAA) to assist distribution companies (DISCOs) and Suppliers of Last Resort (SoLR) in meeting their capacity obligations through competitive auctions.
3. NEPRA has granted a System Operator license to NTDC and approved the Grid Code 2023 to delineate the functions, responsibilities, and terms & conditions of the System Operator.
4. CPPA-G has been registered as a Special Purpose Agent to manage the existing legacy contracts under the new market framework 14.
5. NEPRA has developed/revised/amended key regulations, such as the NEPRA (Electric Power Procurement) Regulations, 2022, NEPRA Open Access Regulations, 2022, and NEPRA Licensing (System Operator) Regulations, 2022, to establish the regulatory framework for the CTBCM.

The successful implementation of CTBCM is a critical milestone for Pakistan's power sector transitioning it to a more competitive market structure, however , more detailed study is required to ensure that more efficient and effective market will evolved after its implementations & end user concerns & interests are properly secured.

The key features of the Competitive Trading Bilateral Contract Market (CTBCM) in Pakistan (Based on NEPRA report)

• ?Independent Auction Administrator (IAA) A registered entity will play the role of an IAA to assist distribution companies (DISCOs) and Suppliers of Last Resort (SoLR) in meeting their capacity obligations through competitive auctions
• System Operator Licensing: #NTDC has been granted a System Operator license by NEPRA, and the Grid Code 2023 has been approved to delineate the functions, responsibilities, and terms & conditions of the System Operator.
• CPPA-G as Special Purpose Agent: #CPPA has been registered as a Special Purpose Agent to manage the existing legacy contracts under the new market framework.
• Regulatory Framework: #NEPRA has developed key regulations, to establish the regulatory framework for the CTBCM.
• Test-run and Monitoring: #NEPRA has monitored the implementation of the CTBCM test-run plan and the progress of the approved CTBCM Implementation Roadmap.
• Eligibility Criteria Rules: The Federal Government is responsible for formulating the Eligibility Criteria Rules, which are awaiting approval and notification.?
• Grid Code Revision: NEPRA has approved the #Grid #Code 2023 to align with the CTBCM and adapt to the evolving dynamics of the power sector.
• Agency Code and Distribution Code: CPPA-G has submitted the draft Agency Code, and DISCOs are working on revising the Distribution Code to accommodate the competitive electric power market.
• Connection Agreements and Use of System Agreements: DISCOs and PPIB are collaborating to develop harmonized Connection Agreements
• Lifting of Moratorium: The moratorium on Sections 23A, 23B, 23G, and 23H of the NEPRA Act has been lifted, paving the way for the commencement of CTBCM.