Karachi consumers to choose own electricity supplier from 2026, NA told

Consumers in Karachi and other parts of Pakistan will be able to choose their electricity supplier from January 2026 under the government’s plan to introduce a competitive power market, the National Assembly’s Standing Committee on Power was informed on Wednesday.

The committee, chaired by MNA Muhammad Idrees, met to discuss the “Multi-Vendor Electricity Distribution Bill, 2025,” tabled by MNA Shahida Rehmani. However, the committee decided to defer consideration of the bill until February 2026 for further review.

Power Division Secretary Dr Fakhr Alam Irfan told lawmakers that in the first phase of market liberalisation, open access will be provided to consumers using up to one megawatt (MW) of electricity. He said that around 200 MW of power will be made available for bulk purchase initially, allowing consumers to choose their preferred supplier instead of relying on a single distribution company.

Rehmani, while presenting the bill, highlighted Karachi’s persistent electricity challenges and inefficiencies under K-Electric’s management, stressing the need for competition to improve service delivery.

The committee was also briefed that Pakistan’s combined off-grid and net-metered solar capacity has reached approximately 18,000 MW — including 6,000 MW from net-metered systems and 12,000 MW from off-grid installations detected through satellite imagery.

Officials warned that the rapid expansion of distributed solar systems poses challenges for grid stability, as the government works to integrate renewable sources with the national grid.

Dr Fakhr Alam noted that power generated through the grid carries additional charges of Rs14 per unit for capacity payments and Rs9 in taxes, whereas net-metered electricity remains comparatively cheaper.