Islamabad Web Desk: Authorities are actively considering reducing wheeling charges to around Rs. 10-12 per unit to make the Competitive Trading Bilateral Contract Market (CTBCM) a success. However, this reduction will only be feasible if stranded costs are excluded from the calculations.
A senior official revealed that the government aims to establish a wholesale private electricity market by March or April, ensuring wheeling charges remain acceptable for both buyers and sellers.
“Ideally, wheeling charges should be around Rs. 6-7 per unit,” the official stated. However, the government is contemplating adding a cross-subsidy of Rs. 5-6 per unit, which would be incorporated into the wheeling charges.
If the burden of stranded costs is shared equally between the government and consumers—each covering 50%—then wheeling charges could be contained at Rs. 17-18 per unit, a significant drop from the previously proposed Rs. 27-32 per unit.
This raises a crucial question: Why should consumers bear the financial consequences of mistakes they did not commit? Under the stranded cost mechanism, the government expects consumers to pay for a generation capacity of 45,888 megawatts, despite a documented 2.4% decline in electricity consumption.
The move to lower wheeling charges aims to foster a competitive and sustainable private power market. However, the challenge remains: how to balance fair pricing for consumers while ensuring financial sustainability for all stakeholders involved. The coming months will be crucial in determining how the government navigates this complex energy transition.
Your post is a game-changer; it challenged my perspective.
I merely discovered your website and I’m immediately hooked! Your content is amazing.
The detail in this write-up is noteworthy.
Such a valuable bit of content.
This piece is amazing.
Such a valuable bit of content.
I’ll definitely return to read more.
This piece is amazing.
Such a helpful resource.
I took away a great deal from this.
You’ve obviously done your homework.
I learned a lot from this.
I absolutely liked the manner this was written.
More blogs like this would make the blogosphere a better place.
More content pieces like this would make the web more useful.
This article is valuable.
I discovered useful points from this.
I absolutely appreciated the manner this was presented.
I gained useful knowledge from this.
More posts like this would make the web better.