PM Okays Independent Market for Electricity Production and Sale in Pakistan

The Cabinet Committee on Energy (CCoE) has approved the creation of an Independent System and Market Operator (ISMO) for electricity production and purchase in Pakistan. According to a statement issued by the Prime Minister’s Office (PMO) on Wednesday, this will transform the current electricity market into a multi-player system. It said the federal cabinet will formally approve ISMO, which will be registered under the Companies Act 2017 with the Securities and Exchange Commission of Pakistan (SECP). The ISMO will gradually phase out the government’s role as the sole buyer of electricity and allow consumers to purchase electricity from various suppliers besides distribution companies (DISCOs). Sources said the ISMO will support long-term planning for cost-effective power generation and transmission which would help reduce electricity rates and the circular debt. The Prime Minister has demanded quick implementation of reforms in the electricity sector, including taking swift actions to curb electricity theft and losses. He called for departmental action against DISCO employees involved in electricity theft and stressed the importance of using modern technology to prevent such issues.