The Cabinet Committee on Energy (CCoE) on Wednesday approved the establishment of an independent multiplayer market for power generation and purchase to create a competitive environment and gradually end the government’s role as a sole purchaser of electricity.
In the meeting chaired by Prime Minister Shehbaz Sharif, the committee principally approved the constitution of an Independent System and Market Operator (ISMO) which will be later endorsed by the federal cabinet and registered with the Securities and Exchange Commission of Pakistan under the Companies Act 2017.
“The ISMO is aimed at gradually decreasing the government’s role as a sole buyer of electricity and turning the electricity market into a multiplayer independent, transparent and competitive market,” stated a statement from the Prime Minister’s Office (PMO).
Furthermore, the independent operator will also allow the power consumers to purchase electricity from suppliers other than power distribution companies.
