National Grid Company begins restructuring under new framework

The National Grid Company (NGC), previously known as the National Transmission and Despatch Company (NTDC), has initiated the restructuring process, following a directive from the Federal Cabinet. The company’s Board of Directors (BoD) has set up a Restructuring Committee to manage the transition, Business Recorder reported. 

The restructuring, which was first communicated by the Cabinet on November 6, 2024, is being carried out in accordance with a letter from the Power Division dated November 20, 2024. 

As part of the restructuring, NTDC shareholders unanimously voted to change the company’s name to National Grid Company of Pakistan Limited at a meeting on December 26, 2024. This name change, subject to Securities and Exchange Commission of Pakistan (SECP) approval, was facilitated after the Chief Law Officer (CLO) of NGC was authorised to handle all legal procedures.

Nepra granted its no-objection to the name change on February 24, 2025, and SECP issued a formal Certificate of Incorporation for NGC on March 20, 2025. 

In parallel, the Energy Infrastructure Development and Management Company (EIDMC) was incorporated, with the Ministry of Energy submitting necessary incorporation documents to SECP in January 2025. EIDMC received its Certificate of Incorporation on January 3, 2025.

The restructuring also includes the incorporation of the Independent System & Market Operator (ISMO), a key entity in the power sector’s operational structure. 

ISMO was officially incorporated on December 4, 2024, with support from NGC’s Legal Department. To ensure smooth operations, NGC allocated resources from legal, finance, and HR departments to ISMO starting January 1, 2025.

Business Transfer Agreements (BTAs) and Service Level Agreements (SLAs) between NTDC, ISMO, and CPPA-G were signed and approved by the respective Boards. These agreements are crucial for the smooth transfer and operationalization of the entities involved in the restructuring process.

The restructuring efforts are progressing as per the Cabinet’s instructions, with significant steps already completed. NGC is continuing to work on organizational adjustments and other formalities as part of the ongoing transition. 

Maria Rafique, CLO of NGC, confirmed that the company is keeping the Power Division updated on the progress and will provide further updates upon completion of the remaining steps. 

Nepra has also issued licenses to the newly established entities, marking a key development in Pakistan’s power sector reform.