Consumers have largely been passive participants, purchasing electricity through distribution companies without the ability to choose suppliers, negotiate contracts or benefit from market competition.

Under this model, eligible consumers will have the ability to purchase electricity directly from suppliers while using the national grid to transport that power.

If electricity market reforms initially benefit large industrial consumers, when and how will ordinary households benefit?

Pakistan’s electricity problem has often been described as a shortage problem, but the reality is far more complicated. The country today has considerably more generation capacity than it did a decade ago, yet consumers continue to face rising electricity bills, unreliable service and a system in which they have almost no control over their energy choices. The real challenge is no longer simply producing more electricity; it is fixing a power market that has struggled to deliver affordable and dependable energy to the people who need it most.

The government’s latest push towards the Competitive Trading Bilateral Contract Market (CTBCM) and virtual-grid systems represents an attempt to address this deeper structural problem. By introducing competition, encouraging direct electricity purchasing and creating new ways to manage renewable energy, these reforms could mark an important turning point for Pakistan’s power sector. But the central question remains whether this transformation will improve the lives of ordinary consumers or mainly create opportunities for those who already have the resources to participate.

For decades, Pakistan’s electricity system has operated under a highly centralised model. Consumers have largely been passive participants, purchasing electricity through distribution companies without the ability to choose suppliers, negotiate contracts or benefit from market competition. This structure may have been suitable when the sector was smaller and less complex, but it has struggled to respond to the demands of a growing economy and changing energy landscape.

The consequences are visible across the country. Businesses frequently cite energy costs as a major obstacle to competitiveness, while households continue to adjust their budgets around increasingly expensive electricity bills. At the same time, the power sector remains burdened by financial challenges, inefficiencies in distribution........

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