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CCP leads discussion on enhancing competition in Power Sector

News Desk
December 24, 2024
CCP leads discussion on enhancing competition in Power Sector
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ISLAMABAD, December 24: The Competition Commission of Pakistan (CCP) organized a dissemination session at its head office to present key findings and actionable recommendations from its recently published Competition Assessment Study on the Power Sector. The session, led by CCP Members Mr. Saeed Ahmad Nawaz, Mr. Salman Amin and Ms. Bushra Naz Malik, focused on the study’s insights and discussed the next steps for improving competition within the sector.

The session was specifically designed to elaborate on the regulatory framework, market structure and barriers to competition while offering strategic recommendations to promote a more competitive environment in the power sector. Among the key recommendations discussed was the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) model. This model enables power generation and distribution companies to establish direct contracts for electricity sales, marking a significant step toward introducing retail competition in Pakistan’s electricity market.

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Senior officials from various organizations attended, including the Ministry of Energy (Power Division), National Electric Power Regulatory Authority (NEPRA), Privatization Commission, Pakistan Nuclear Regulatory Authority (PNRA), Pakhtunkhwa Energy Development Organization (PEDO), Peshawar Electric Supply Company (PESCO), Lahore Electric Supply Company (LESCO), Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company Limited (GEPCO), Punjab Power Development Board, and the Energy & Power Department KPK.

Mr. Saeed Ahmad Nawaz, Member CCP, highlighted the inefficiencies of state monopolies, a global issue that often leads to a lack of transparency and accountability. He emphasized the need for corporate governance to address these inefficiencies. Drawing comparisons with the telecommunications and banking sectors, he noted how competition has provided consumers with more choices and reduced government control. He stressed that decentralization are key to fostering efficiency and attracting foreign investment.

Ms. Kishware Khan (Director General) and Mr. Samiullah Jan Afridi (Assistant Director) delivered an in-depth presentation on the Competition Assessment Study, outlining its methodology, key findings and actionable recommendations.

The session saw active participation from stakeholders, with numerous questions and valuable comments, all of which were addressed by CCP officials. Through its research and advocacy, CCP aims to create a fair, efficient, and competitive marketplace that benefits consumers and businesses alike.

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