Cabinet authorizes separate multiplayer market for energy acquisition

In an effort to foster competition and progressively phase out the government’s position as the exclusive buyer of electricity, the Cabinet Committee on Energy approved the creation of an autonomous multiplayer market for power generation and purchase on Wednesday.

According to a PM Office press release, the committee primarily approved the establishment of an Independent System and Market Operator (ISMO) during its meeting presided over by Prime Minister Shehbaz Sharif. The ISMO will be subsequently approved by the federal cabinet and registered with the Securities and Exchange Commission of Pakistan in accordance with the Companies Act 2017.

The goal of the ISMO is to eventually eliminate the government’s position as the only purchaser of energy and transform the market into one that is transparent, competitive, and open to several players. Additionally, it will let customers buy electricity from vendors other than power distribution firms.

In addition to lowering power prices and circular debt, the ISMO would make long-term plans to generate and transmit cheap electricity.

The specialists from the power industry will make up the ISMO Board.

The revolving debt of the electricity industry was explained to the attendees of the meeting.

In addition to ordering expedited efforts to minimize power theft and losses, Prime Minister Shehbaz indicated in his remarks that the distribution companies’ personnel who were implicated in the theft would face disciplinary punishment. He also stated that priority measures were being taken for the reforms of the electricity industry.

In order to implement changes and stop electricity theft, the prime minister also gave the relevant agencies instructions to use contemporary technologies.

Attending the meeting were Dr. Musaddik Malik, Minister of State Ali Pervaiz Malik, Federal Ministers Muhammad Aurangzeb, Ahsan Iqbal, Ahad Khan Cheema, and Sardar Awais Ahmed Leghari.