Govt splits NTDC into three entities

Minister hints at relief package every six months

ISLAMABAD:

Federal Minister for Power Awais Leghari on Saturday announced the unbundling of the country's sole transmission company—the National Transmission and Despatch Company (NTDC)—into three entities, which will be fully functional in four months.

"The NTDC's restructuring is expected to complete with full operational readiness by February 2025. The company has been plagued by mismanagement, but we are making changes to ensure a reliable and cost-effective energy supply," he said at a news conference in the federal capital.

"Through this major overhaul, the government will address chronic issues including project delays, cost overruns, corruption, nepotism, and lack of transparency," Leghari added.

The restructuring plan that divides the NTDC into three entities aims to usher in a new era for the country's energy sector. Under this restructuring, three independent entities will emerge.

The National Grid Company of Pakistan (NGCP) will focus on making power transmission services in Pakistan more efficient and reliable.

The Energy Infrastructure Development and Management Company (EIDMC) will be tasked with overseeing developmental activities and project management. It will encourage private investment in Pakistan's energy infrastructure.

The Independent System and Market Operator (ISMO) will create a competitive, transparent electricity market for consumers, allowing them to purchase electricity from multiple suppliers, including distributors, enhancing market participation and choice.

Each entity will operate under separate boards of directors to ensure accountability and performance.

The minister said the Government of Pakistan remains committed to improving the efficiency of the power transmission system, aiming for substantial reductions in electricity costs.

He said the restructuring is also part of a broader policy initiative aimed at policy stability and fostering investor confidence in Pakistan's energy sector. Leghari, who oversees the restructuring, emphasized that the move reflects the government's commitment to a robust, consumer-friendly energy sector.

To further promote transparency, the NTDC will upload a Dispatch Merit Order report on its website every month, ensuring public access to the company's dispatch priorities and performance updates.

"For the first time in history, we have significantly lowered the cost of surplus electricity," he said.

"The government will offer a relief of Rs26 per unit for additional power usage, aiming to encourage consumers to switch from costly gas to affordable electricity, especially during the winter months from October to March."

Leghari noted that if the package proves successful, it could become a recurring six-month relief plan each year. "Our aim is to make cheaper electricity a consistent option for the public."

He said transmission project delays contribute to higher electricity costs. The minister emphasized that the government's promise to lower electricity costs for the public remains firm.

"Electricity prices are being significantly reduced to Rs26 per unit to stimulate economic activity. This package is essential, and we'll see its results over the next two to three months."