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.
Single Buyer:
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: