- The Federal Cabinet has already approved the restructuring of NTDC.
- This move will improve oversight and eliminate legacy problems.
- The minister says the body will be divided into three entities by next year.
ISLAMABAD: With the current government taking an official decision to reform the power transmission sector, consumers will be able to choose from several electricity suppliers due to the restructuring of the National Transmission and Distribution Corporation (NTDC). News reported on Sunday.
“NTDC has long suffered from mismanagement, but we are introducing sweeping changes to improve the sector,” Federal Energy Minister Awais Leghari said during a press conference, adding that the authority will be split into three separate entities by early next year to enhance efficiency. And reduce costs in the country’s electricity network.
This restructuring process, which has already been approved by the Council of Ministers, is expected to improve oversight and eliminate long-standing issues such as project delays, cost overruns, corruption and nepotism.
Three independent entities will be established – National Grid Corporation of Pakistan (NGCP), Energy Infrastructure Development and Management Company (EIDMC), and Independent System and Market Operator (ISMO).
The NGCP will focus on making the country’s power transmission services more reliable and efficient. EIDMC will oversee development activities and manage energy infrastructure projects, while ISMO will create a competitive electricity market, allowing consumers to choose from multiple suppliers, including distributors, to reduce costs.
Each of these new entities will operate under separate boards of directors to enhance accountability and reduce bureaucratic delay. Unlike the previous structure that employed thousands of employees, each new company will have between 50 and 70 employees.
In addition to restructuring the NTDC, the government is negotiating with private power generation companies to reduce costs for consumers, with a focus on lowering power tariffs.
After that, the government plans to negotiate with its own generators including domestic renewable energy sources such as wind and solar plants to reduce costs and lower energy tariffs.
The Minister highlighted Pakistan’s growing importance in green energy, noting that renewable sources including wind, solar, nuclear and hydropower now account for 55% of the country’s energy mix. He said that over the next decade, 88% of the country’s energy production will come from clean sources.
“We are proud to be a leader in green energy in the region,” said Leghari.
He also stressed on the electricity subsidy package recently announced by Prime Minister Shehbaz Sharif which will significantly reduce electricity prices by Rs 26 per unit for consumers during the winter months – from December 2024 to February 2025.
The minister said that the initiative aims to encourage consumers to use electricity for heating instead of gas. If successful, the package could become an annual relief measure, providing lower prices during the winter months.
“Our goal is to make affordable electricity a consistent choice for the public,” he said, adding that the government remains committed to continuing to reform the energy sector, with the ultimate goal of transforming the country into the most efficient energy provider in the region.
Leghari also highlighted recent improvements in energy theft prevention and recovery, which have contributed to improved energy management. He encouraged consumers to take advantage of the new winter electricity package, stressing that it will stimulate economic activity while supporting the country’s energy efficiency goals.