The Cabinet Committee on Energy has approved the creation of an independent multiplier market for generation and purchase of electricity.
Through this institution, an efficient and transparent competitive electricity market will be established in Pakistan, long-term planning for low-cost power generation and transmission system will be possible.
The meeting of the Cabinet Committee on Energy was held under the chairmanship of Prime Minister Muhammad Shahbaz Sharif, in which an independent multiplier market was approved for the production and purchase of electricity, taking a big step to reform the country’s energy sector.
In the meeting, the Cabinet Committee gave in-principle approval for the formation of Independent System and Market Operator (ISMO) which will be approved by the Cabinet, ISMO should be registered with SECP under the Companies Act, 2017. will
ISMO will gradually eliminate the role of the government as the sole buyer of electricity in the country and transform the electricity market into a multiplier independent market, through which an efficient and transparent competitive electricity market will be established in Pakistan. .
This system will enable electricity consumers to purchase electricity from suppliers other than distribution companies. This institution will enable long-term planning for cost-effective power generation and transmission systems.
In the briefing, it was informed that the establishment of ISMO will significantly reduce the revolving credit and electricity rates in the power sector. The involvement of experts in the power sector in the board of ISMO will be ensured. A briefing was given on the revolving loans of the power sector.
The Prime Minister said that measures are being taken on a priority basis for the reforms of Pakistan’s electricity sector. Departmental action should be taken against the employees, reforms of the electricity sector and use of modern technology should be ensured to prevent theft.
