6 days ago
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Power wheeling policy for export industry: MoC seeks update from PD ahead of NEDB meeting
ISLAMABAD: The Ministry of Commerce has sought an update from the Power Division on the long-awaited electricity wheeling policy for the export industry, ahead of the National Export Development Board (NEDB) meeting scheduled for Thursday (July 17), to be chaired by Prime Minister Shehbaz Sharif.
On July 22, 2024, during a previous NEDB session, the Prime Minister had directed that the wheeling policy for the export sector be finalized without further delay.
According to the Commerce Ministry, the upcoming 4th NEDB meeting on July 17, 2025, will include a review of the updated status of the wheeling policy, with a particular focus on recommendations from the technical committee headed by the Special Assistant to the Prime Minister. These include proposals for viable wheeling charges.
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Sources said the success of the Competitive Trading Bilateral Contracts Market (CTBCM) hinges on two critical factors: the volume of available capacity and the level of wheeling charges. Wheeling charges are now expected to be reduced to Rs12/kWh, down from the earlier proposed Rs26/kWh.
The All Pakistan Textile Mills Association (APTMA) has strongly advocated for electricity availability through business-to-business (B2B) contracts at wheeling charges between 1 to 1.4 cents/kWh, excluding cross-subsidies and stranded costs.
APTMA argues that in the current economic climate, boosting exports must be a top national priority. The industry warns that uncompetitive power tariffs and emerging green energy regulations in export markets are serious threats to Pakistan's textile and apparel exports. A competitive wheeling mechanism under CTBCM is considered essential for the industry's recovery and long-term sustainability.
The association has criticized the Central Power Purchasing Agency-Guarantee (CPPA-G) and distribution companies (Discos) for proposing an 'absurd' wheeling charge of 9.6 cents/kWh, saying it defeats the purpose of CTBCM and market liberalization. APTMA notes this rate is even higher than the full electricity tariffs for export sectors in competing countries such as: (i) Bangladesh: 8.6 cents/kWh; (ii) India: 6 cents/kWh; and (iii) Vietnam: 7.2 cents/kWh
APTMA has also raised concerns about Rule 5 of the Eligibility Criteria (Electric Power Supplier Licence) Rules, 2023, which it claims undermines NEPRA's authority to independently determine fair wheeling charges. The rule reportedly allows the Power Division to dictate both the structure and amount of wheeling charges.
Reiterating its long-standing demand, APTMA has called for a regionally competitive power tariff of 9 cents/kWh, citing both regional benchmarks (5–9 cents/kWh) and domestic cost-of-service studies, which show that tariffs for 83–84% of Pakistani consumers are already around that level.
NEPRA's recent determination supports this demand, with industrial base rates for July 2025 set at: (i) Rs21.65/kWh (off-peak); and (ii) Rs30.76/kWh (peak). These rates roughly translate to 9.5 cents/kWh before the application of cross-subsidies.
On renewable energy wheeling, APTMA claims that the current wheeling rate of 4.5 cents/kWh makes CTBCM implementation economically unviable. It notes that even for a textile unit operating three shifts a day, only about 20% of energy needs can be met through wheeling at a viable cost (~8 cents/kWh).
Copyright Business Recorder, 2025
