Consumers to choose from multiple power suppliers under NTDC restructuring

• Federal cabinet has already approved NTDC's restructuring.
• Move will improve oversight and eliminate longstanding issues.
• Body will be divided into three entities by next year, says minister.

ISLAMABAD: With the incumbent government formally deciding to overhaul its energy transmission sector, consumers will be able to choose from multiple electricity suppliers due to the restructuring of the National Transmission and Dispatch Company (NTDC), The News reported on Sunday.

"The NTDC has long been plagued by mismanagement, but we are introducing sweeping changes to improve the sector," said Federal Energy Minister Awais Leghari during a press briefing saying that the body will be divided into three separate entities by early next year to boost efficiency and cut costs in the nation's power grid.

This restructuring, which has already been approved by the cabinet, is expected to improve oversight and eliminate longstanding issues like project delays, cost overruns, corruption and nepotism.

It will create three independent entities — the National Grid Company of Pakistan (NGCP), Energy Infrastructure Development and Management Company (EIDMC), and Independent System and Market Operator (ISMO).

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 establish a competitive electricity market, allowing consumers to choose from multiple suppliers, including distributors, to drive down costs.

Each of these new entities will operate under separate boards of directors to promote accountability and reduce bureaucratic delays. Unlike the previous structure which employed thousands of staff, each new company will have between 50 and 70 employees.

In addition to NTDC restructuring, the government is negotiating with private energy generators to reduce costs for consumers, with a focus on lowering power tariffs.

Following this, the government plans to negotiate with its own generators including local renewable energy sources like wind and solar plants to lower costs and cut power tariffs.

The minister highlighted Pakistan's growing prominence in green energy, noting that renewable sources including wind, solar, nuclear and hydro-power now account for 55% of the country’s energy mix. He said within the next decade, 88% of the nation’s energy production would come from clean sources.

"We are proud to be a leader in green energy in the region," said Leghari.

He also underscored Prime Minister Shehbaz Sharif's recently announced Electricity Sahulat Package which will significantly reduce electricity prices by Rs26 per unit for consumers during the winter months —December 2024 to February 2025.

The minister said the initiative was designed 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 option for the public," he said, adding that the government remained committed to further reforming the energy sector, with the ultimate goal of transforming the country into the most efficient energy provider in the region.

Leghari further highlighted recent improvements in power theft prevention and recovery, which contributed to better energy management. He encouraged consumers to take advantage of the new winter electricity package, emphasising that it would stimulate economic activity while supporting the country’s energy efficiency goals.