Minister orders halt to costly power purchases

Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari has taken serious notice of power off-take from small power producers (SPPs) and captive power plants (CPPs) by distribution companies (DISCOs) at tariffs exceeding the prevailing national merit order, according to a statement issued on Wednesday.

The matter was revealed during a stock-taking of DISCOs. The minister directed an immediate halt to the practice and ordered it to be brought in line with NEPRA's Grid Code, Distribution Code and directions. He also ordered an inquiry into the matter. The minister further directed coordination with the Independent System and Market Operator (ISMO) to include SPPs and CPPs in the dispatch process based on economic merit order (EMO) principles, ensuring least cost for consumers.