The document discusses four electricity market models: 1) Monopoly Model - Vertically integrated utility with no competition 2) Purchasing Agency Model - Generation is competitive but transmission and distribution is controlled by a single utility 3) Wholesale Competition Model - Generation and wholesale markets are competitive but distribution is controlled by local utilities 4) Full Retail Competition Model - Competition exists in generation, wholesale, and retail markets. The document analyzes Pakistan's electricity market transition and notes that while privatization generated revenue, improved efficiency in the power sector has yet to be achieved.

1. ELECTRICITY MARKET MODEL BY SYED RIFFAT ALI RIZVI MANAGER NETWORK(D) MC GULISTAN E JUHAR (R-III) THE KARACHI ELECTRIC SUPPLY CORPORATION LTD. 22 ND IEEEP MULTI-TOPIC INTERNATIONAL SYMPOSIUM PEARL CONTINENTAL KARACHI.

2. INTRODUCTION In order to understand Electricity Market Design, only four models of re-structuring are discussed & compared with re-structured Pakistan Market / industry .

5. Generation Generation Transmission Distribution Consumers Transmission Area Electricity Boards Consumers Monopoly Model-1 Monopolistic (vertically integrated) Model (1991) KESC LTD. WAPDA Inter-Utility Sales

6. Purchasing Agency Model-2 All generation new & existing is competitive and generation received market price. The utility becomes a transmission and distribution (T&D) company. .

7. Purchasing Agency Model-2 KANNUP IPP’s KESC OWN GENERATION WAPDA KESC TRANSMISSION NETWORK DISTRIBUTION CUSTOMERS

9. Whole Sale Competition Model-3 Restructured power wing of WAPDA is very close to this model of whole sale competition. Newly converted separate entities of WAPDA are separate.

10. CHASHMA IESCO FESCO LESCO GEPCO HESCO MEPCO QESCO PESCO Whole Sale Competition Model-3 IPP’S GENCO-I GENCO-II GENCO-III NATIONAL TRANSMISSION & DESPATCH CO. NTDC KESC CORPORATIZATION OF WAPDA IPP’S: RESPRESENTS 16 (SIXTEEN) INDEPENDENT POWER PRODUCTION GENCO-IV

12. IPP IPP IPP IPP IPP Retailer Distco / Retailer Retailer Distco / Retailer Retailer Customer Customer Customer Customer Customer Transmission Wires (NTDC) Wholesale market Distribution Wires Retail market Full Retail Competition Model-4

14. These models corresponds to varying degree of choices for competition / market forces.

15. Privatized K.E.S.C is opting for adding 750 MW Generation on its own, As such KESC will be retaining it monopolistic & vertically integrated model. Where as WAPDA has decided to add 384 MW generation through IPP’s.

16. Conclusion Re-structuring has only helped Govt in generating revenue from sale of govt. owned assets & capital formation outside Govt. budget. What is so far achieved from re-structuring is re-structuring its self and improved efficiency of Pakistan Power Sector (PPS) is yet to be achieved.

17. Thank You