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PM approves ISMO for low-cost electricity supply

CT Newsroom 

Prime Minister (PM) Shehbaz Sharif chaired a meeting of the Cabinet Committee on Energy, (CCoE) in Islamabad today. The committee approved the establishment of a multiplayer independent market termed as Independent System and Market Operator (ISMO) for power generation and purchase of electricity.

Reportedly, on Wednesday, October 9, 2024, PM Shehbaz Sharif chaired the CCoE meeting to create a balance between supply and demand for the stable power supply. For this purpose, the committee allowed the ISMO to effectively connect the buyers and sellers. Through this approval, the electricity consumers would be able to directly purchase electricity from the supplier without the involvement of any third party (distributors). In this way, the production and supply of electricity can be made efficient and the prices can be made market-competitive.

As per Prime Minister Office’s statement, “The committee, chaired by Prime Minister Shehbaz Sharif, principally approved the formation of an Independent System and Market Operator (ISMO) which will later be endorsed by the federal cabinet. ISMO will gradually decrease the government’s role as a sole buyer of electricity and turn the electricity market into an independent, transparent, and competitive one. It will also allow the power consumers to purchase electricity from the suppliers other than power distribution companies.”

The statement further stated, “Under ISMO, long-term planning would be made to produce low-cost electricity besides reducing the power prices and circular debt.”

It is worth mentioning here that the PM emphasized on the inclusion of experts on the ISMO board.

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