Independent multiplier market to buy, generate power approved

Islamabad: The government has approved the creation of an independent multiplier market for the production and purchase of electricity in Pakistan.

The meeting of the Cabinet Committee on Energy was held under the chairmanship of Prime Minister Shehbaz Sharif, in which the government approved the creation of an independent multiplier market for the production and purchase of electricity in Pakistan, taking a major step to reform the country's energy sector.

In the meeting, the Cabinet Committee gave in-principle approval for the formation of an Independent System and Market Operator (ISMO), which will be approved by the Cabinet.

During the briefing, it was informed that ISMO will be registered with SECP under the Companies Act 2017. ISMO will phase out the government's role as the sole buyer of electricity in the country and make the electricity market a multiplier. This will establish an efficient and transparent competitive electricity market in Pakistan.

It was stated in the briefing that this system will enable electricity consumers to purchase electricity from suppliers other than distribution companies. This institution will enable long-term planning for low-cost power generation and transmission systems.

It was further informed in the briefing that the establishment of ISMO will significantly reduce the revolving credit and electricity rates in the power sector. The inclusion of experts in the power sector on the board of ISMO will be ensured.

On this occasion, Prime Minister Shehbaz Sharif said that measures are being taken on a priority basis for the reforms of Pakistan's electricity sector, and measures should be made fast and effective to reduce theft and losses in the electricity sector.

He stated that departmental action should be taken against the employees of the distribution companies involved in electricity theft. Reforms in the electricity sector and the use of modern technology should be ensured to solve the theft.