- Review finds off-merit power procurement inflating consumer costs.
- Utilities told to follow Nepra rules and grid codes strictly.
- Discos directed to coordinate with Ismo for proper power dispatch.
ISLAMABAD: Federal Minister for Energy Awais Leghari has directed an immediate halt to electricity purchases exceeding the national least-cost benchmark.
The power minister also initiated an inquiry into distribution companies (Discos) allegedly buying power from small and captive plants at tariffs above the permitted rates, The News reported.
Leghari passed these directives after a review found Discos drawing power from Small Power Producers (SPPs) and Captive Power Plants (CPPs) outside the prescribed economic merit order, potentially inflating consumer costs.
He directed utilities to immediately discontinue the practice and align all procurement with rules set by the National Electric Power Regulatory Authority (Nepra), including its Grid and Distribution Codes.
The minister ordered a formal inquiry to determine responsibility and ensure accountability, while instructing Discos to coordinate with the Independent System and Market Operator (ISMO) to integrate SPPs and CPPs strictly under Economic Merit Order (EMO) principles, dispatching generation based on the lowest incremental cost.
In a follow-up directive, the Power Division barred any off-merit electricity procurement from SPPs without explicit prior approval from ISMO.
It said power off-take must be limited to cases that fall within the prevailing national merit order, determined through the prescribed cost-based mechanism.
