PM approves formation of ISMO for generation, purchase of electricity

Prime Minister Shehbaz Sharif presided over a Cabinet Committee on Energy meeting in Islamabad today that agreed in principle the establishment of an Independent System and Market Operator (ISMO) for the production and purchase of energy.

The federal cabinet will also be consulted for its approval.

Under the Companies Act of 2017, ISMO will be registered with SECP.

The government’s position as the nation’s exclusive purchaser of power will be gradually eliminated by ISMO, which will also turn the electricity market into a competitive, autonomous market.

Customers will be able to buy electricity from providers other than distribution firms thanks to the system.

Long-term planning for reasonably priced power generation and transmission networks will be made possible by this institution.

There will be a significant drop in the power sector’s circular debt  and electricity rates with the creation of ISMO. It shall be made sure that experts are represented on the ISMO  board. Prime Minister Shehbaz Sharif stated during his remarks on the  occasion that reforms in the power sector are being prioritised. He gave the relevant agencies instructions to act quickly and  decisively to lower losses and theft in the electricity industry. According to him, personnel of distribution companies engaged in  electricity theft should face disciplinary action. According to the prime minister, it is important to make sure that  contemporary technology is used for both preventing theft and  power sector changes.