Govt to Open Power Market in 2026: Consumers to Choose Their Own Electricity Suppliers

In a historic policy shift, the Government of Pakistan has announced plans to liberalize the electricity market by January 2026, granting consumers the freedom to select their preferred power suppliers. This landmark initiative aims to introduce competition, lower electricity costs, and improve transparency within the national power distribution network.

Much like modern digital ecosystems such as No777 game, which empower users through choice and open access, Pakistan’s upcoming power market reform will decentralize control and promote fair competition — setting the foundation for a more efficient and consumer-centric electricity landscape.

What the New Market Means

Initially, this policy will apply to consumers with a minimum load of one megawatt (MW) — primarily industrial and large commercial users. These consumers will have the option to purchase power directly from any licensed electricity supplier, rather than being restricted to a single regional distribution company (DISCO).

According to Power Division Secretary Dr. Fakhar Alam Irfan, this transition represents a vital step in modernizing Pakistan’s power sector.

“We are entering an open market era that will enhance service quality, drive pricing fairness, and foster competition,” he stated during a briefing to the National Assembly’s Standing Committee on Power.This reform will also align Pakistan’s power policies with international energy models, where open markets lead to innovation and efficiency.

Reducing Circular Debt & Financial Pressure

The reform directly targets Pakistan’s long-standing circular debt issue, which has been a key obstacle in achieving a stable energy economy. Dr. Alam confirmed that financial losses have already been reduced from Rs600 billion in 2024 to Rs397 billion in 2025 — with additional improvements expected after market liberalization.

He added that power feeders with less than 20% loss will no longer face unnecessary shutdowns — a move expected to protect both consumers and government revenues. The ultimate goal is to strengthen billing transparency, improve recovery, and stabilize the sector’s financial ecosystem.

Karachi’s Monopoly Challenge

Committee member Shahida Rehmani highlighted Karachi’s ongoing power crisis, criticizing K-Electric’s monopoly over Pakistan’s largest city. She stressed that while the city generates significant revenue, it continues to face load shedding, billing disputes, and service inefficiencies.

Her statement underscores a broader public demand for alternative suppliers and competitive pricing — benefits expected to emerge once the market fully opens in 2026.

Solar Expansion and Its Impact

Pakistan’s solar energy sector is rapidly growing, with net-metering capacity surpassing 6,000 MW and off-grid solar installations exceeding 1,200 MW. This transition toward renewable energy reduces dependency on expensive grid-based electricity.

However, the national grid faces new financial challenges as capacity charges (Rs14/unit) and taxes (Rs9/unit) make traditional electricity costlier than solar. Experts believe that the open market model will balance these costs and introduce dynamic pricing models similar to competitive digital systems seen in platforms like No777 game, where flexibility drives user satisfaction and sustainability.

What This Means for Everyday Consumers

While the first phase of the open electricity market will focus on large-scale users, the government aims to extend supplier choice to small consumers and households in later stages. This means in the near future, residential customers could select their electricity provider much like they choose mobile or internet plans — bringing competition-driven efficiency to every household.

LESCO and other DISCOs are expected to play a critical role in implementing these changes, ensuring fair billing systems, accurate meter readings, and seamless consumer support as new policies take effect.

A Step Toward Energy

FreedomThe opening of Pakistan’s power market is more than just a policy reform — it’s a strategic step toward consumer empowerment, transparency, and financial discipline in the energy sector.As technology, digitalization, and competition reshape industries globally, Pakistan’s energy reform represents a new dawn of choice, accountability, and progress — one that aligns national energy systems with future-ready governance.