In a major move to control rising electricity costs, the government has stepped in to stop expensive power purchases by distribution companies. The decision aims to ensure fair pricing and protect consumers from unnecessary financial burden.
Energy Minister Takes Strict Action
Federal Energy Minister Awais Leghari has ordered an immediate halt to electricity purchases that exceed the national least-cost benchmark. According to Beyond Time News, this step comes after concerns that some companies were buying power at higher rates than allowed.
The minister also launched an inquiry into distribution companies (Discos) over possible violations of procurement rules.
Costly Power Deals Under Investigation
A recent review found that some Discos were purchasing electricity from small and captive power plants at rates above approved limits. These practices ignored the economic merit order, which ensures power is bought at the lowest possible cost.
Officials believe such decisions have contributed to higher electricity bills for consumers.
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Strict Compliance with Nepra Rules
The government has now directed all utilities to strictly follow regulations set by the National Electric Power Regulatory Authority. These include grid and distribution codes designed to maintain fairness and efficiency in the system.
According to Beyond Time News, companies must now align all power purchases with these guidelines to avoid further action.
Coordination with ISMO Made Mandatory
Discos have also been instructed to work closely with the Independent System and Market Operator. This coordination will ensure that electricity dispatch follows the Economic Merit Order (EMO), where cheaper power sources are used first.
The goal is simple: reduce costs and improve efficiency across the power sector.
Inquiry to Ensure Accountability
The Power Division has ordered a formal investigation to identify those responsible for off-merit power purchases. Authorities plan to take strict action against any violations.
Additionally, companies cannot buy electricity outside the approved merit order without prior permission from ISMO.
Relief Expected for Consumers
These steps aim to bring transparency and discipline to the energy sector. By stopping expensive power deals, the government hopes to reduce electricity costs and provide relief to consumers.
According to Beyond Time News, this move could play a key role in stabilizing Pakistan’s power sector and improving long-term efficiency.
