The Cabinet Committee on Energy has given the green light for the establishment of an independent multiplayer market for power generation and purchase. Under the leadership of Prime Minister Shehbaz Sharif, the committee approved the formation of an Independent System and Market Operator (ISMO). This move aims to create a competitive environment in the electricity market and reduce the government’s role as the sole purchaser of electricity.
The ISMO will pave the way for a transparent and competitive electricity market, allowing consumers to purchase power from suppliers other than distribution companies. The focus will be on producing low-cost electricity, improving transmission, and reducing power prices and circular debt. The ISMO Board, consisting of experts from the power sector, will oversee this transformation.
During the meeting, Prime Minister Shehbaz emphasized the need for power sector reforms, including measures to tackle power theft and losses. The use of modern technology was also encouraged to curb power theft. Federal ministers and other committee members attended the meeting to discuss the circular debt issue and ways to improve the sector’s efficiency.
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