ISLAMABAD: Power Minister Awais Ahmad Leghari has initiated an investigation into power distribution companies (DISCOs) for allegedly acquiring electricity from small producers in breach of the established merit order, the Power Division announced on Tuesday.
Leghari expressed serious concern over reports that certain DISCOs were procuring electricity outside the regulatory framework. He instructed these companies to immediately align all power purchases with the guidelines set by the National Electric Power Regulatory Authority (NEPRA).
In a significant development, the minister also directed all distribution companies to work closely with the Independent System and Market Operator to guarantee strict adherence to the merit order system. This system prioritizes dispatching electricity from the least expensive power plants first to minimize overall generation costs.
“No distribution company will be permitted to contravene the principle of utilizing the lowest-cost power plants initially,” the minister emphasized.
The Power Division clarified that electricity procurement from small power producers must comply strictly with the existing merit order criteria. It stressed that all applicable rules and regulations should be observed meticulously.
Leghari further mandated immediate measures to ensure full compliance across all DISCOs and issued a stern warning that any deviations from the merit order would face strict consequences.
This directive aligns with Pakistan’s ongoing efforts to reduce power generation expenses and enhance efficiency within the energy sector.
