ISLAMABAD: A meeting of the Cabinet Committee on Energy chaired by Prime Minister Shehbaz Sharif in Islamabad on Wednesday approved the formation of an Independent System and Market Operator (ISMO) for the generation and purchase of electricity.
Its final approval will also be sought from the federal cabinet. ISMO once approved will be registered with SECP under the Companies Act 2017.
ISMO will slowly eliminate the role of the government as the only buyer of electricity in the country and transform the electricity market into a multiplayer independent market.
The system will help electricity consumers to purchase electricity from suppliers other than power distribution companies.
This institution will enable long-term planning for cost-effective electricity generation and transmission systems.
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With the formation of ISMO, there will be a substantial reduction in the circular debt and prices of electricity. The energy experts will be included on the board of ISMO.
Prime Minister Shehbaz Sharif, in his remarks on the occasion, said steps are being taken on a priority basis for reforms in the energy sector.
He ordered the relevant authorities to take prompt and effective steps to cut down theft and losses in the power sector.
He added departmental action must be taken against the employees of power distribution companies involved in electricity theft.
The Prime Minister said the use of modern technology should be ensured for the reforms of the energy sector and to prevent theft.
