Islamabad (TDI): The Cabinet Committee on Energy Wednesday approved the formation of an Independent System and Market Operator (ISMO), an independent multiplayer market for power generation and purchase to create a competitive environment.
The decision was finalized during meeting of Cabinet Committee on Energy, chaired by the Prime Minister Shehbaz Sharif here.
The establishment of ISMO will gradually end the government’s role as a sole purchaser of electricity.
The decision will be later endorsed by the federal cabinet and registered with the Securities and Exchange Commission of Pakistan under the Companies Act 2017, according to a press release from PM Office.
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It will also provide option to the power consumers to purchase electricity from suppliers other than power distribution companies.
Under the ISMO, a long-term planning would be made to produce low-cost electricity and its transmission besides reducing the power prices and circular debt, APP reported.
The ISMO Board will comprise the experts from the power sector.
The participants of the meeting were briefed on the circular debt of the power sector.
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In his remarks, Prime Minister Shehbaz said the priority measures were being taken for the power sector reforms and instructed actions to reduce power theft.
For curbing the theft and reforms, the prime minister directed the authorities to utilize modern technology.
Federal ministers Muhammad Aurangzeb, Ahsan Iqbal, Ahad Khan Cheema, Sardar Awais Ahmed Leghari, and Dr Musaddik Malik, Minister of State Ali Pervaiz Malik and other members of the committee attended the meeting.
