ISLAMABAD: Federal Minister for Power Division Sardar Awais Leghari announced a major restructuring initiative for the National Transmission and Dispatch Company (NTDC) apparently to streamline operations within the power sector.
As part of this transformation, the NTDC will be divided into three distinct entities, each assigned to enhance efficiency and address longstanding challenges such as project delays, cost overruns, and transparency issues.
On Saturday, in a press conference, Power Minister Leghari explained that the restructuring aims to streamline operations, improve governance, and provide relief to consumers through lowered electricity prices.
“Electricity has been made more affordable for both industrial and domestic users, reflecting our commitment to easing financial burdens on the public,” he noted.
He attributed the high costs of electricity in part to delays in completing transmission line projects, emphasizing that these inefficiencies have hindered the sector’s growth for years.
“NTDC has faced significant challenges due to mismanagement in the past, but the government is implementing reforms to address these issues and elevate sector performance,” Leghari stated. The reforms seek to establish a competitive electricity market, increase transparency, and enhance accountability, ultimately benefiting consumers.
Under the new structure, NTDC will be divided into three entities:
National Grid Company of Pakistan (NGCP): This new company will be responsible for ensuring the reliable and efficient transmission of electricity across Pakistan, managing the technical aspects of the national grid.
Energy Infrastructure Development and Management Company (EIDMC): EIDMC will focus on developmental activities, including the planning, execution, and completion of transmission infrastructure projects. It will also work to attract private investment in Pakistan’s power sector, accelerating the completion of critical infrastructure projects.
Independent System and Market Operator (ISMO): ISMO will establish a competitive electricity market, allowing consumers to choose electricity suppliers other than distribution companies. This open market will enable consumers to benefit from a range of suppliers, fostering competition and improving service quality.
Each of these entities will operate under separate Boards of Directors to ensure transparency and accountability in their respective functions. The federal cabinet has already approved these entities, which are expected to be operational by February 2025.
To foster greater transparency, NTDC will publish a monthly Dispatch Merit Order Report on its website, www.NTDC.gov.pk, allowing the public to access detailed information on power distribution and costs.
The minister also revealed the Electricity Relief Package for winter, designed to provide economic relief to domestic, industrial, and commercial consumers. Under this package, domestic consumers who consume more than 200 units of electricity in the protected category will receive a rate as low as Rs. 26.7 per unit, potentially saving them between Rs. 11.42 to Rs. 26 per unit over the winter months. For industrial consumers, the package offers savings of 18-37% (or Rs. 5.27 to Rs. 15.5 per unit), helping boost industrial production and economic growth. Commercial consumers, on the other hand, will benefit from a 34-47% saving, equating to Rs. 13.46 to Rs. 22.71 per unit.
“This relief package represents a significant milestone in the power sector, and it underscores our commitment to promoting economic stability in Pakistan,” Leghari said. “We have surplus electricity now, and we aim to make this affordable power accessible to all citizens and industries across Pakistan, reducing dependency on costly gas.”
He further stressed that the power sector, as a key driver of the economy, would benefit from these reforms, which include practical steps to streamline the sector and enhance its profitability. Through the government’s measures, Pakistan’s energy infrastructure is expected to become more efficient and consumer-friendly, boosting investor confidence and stabilizing the power supply chain.
As Pakistan moves forward with this ambitious plan, Minister Leghari expressed optimism that the NTDC’s restructuring and the Electricity Relief Package will bring meaningful economic benefits to the nation. He reaffirmed the government’s dedication to transforming the power sector, saying, “Our goal is not only to improve the infrastructure but also to create a sustainable, transparent, and effective energy system that serves all Pakistanis equitably.”
