The current market structure is single buyer. CPPA-G has been given the mandate from NEPRA and GoP to facilitate the power market in its gradual transition from the current Single Buyer Model to the Competitive regime.
The most basic design for a wholesale market is the Single Buyer Market that opens the sector only to competition in the entry of new generation. This model was initially designed to allow private investors to build power plants by selling to an integrated electricity utility. This was the initial market model in Pakistan, with the introduction of independent power producers (IPPs) selling through long term PPAs to WAPDA.
The typical characteristics of this model include the following: