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National task force kicks off major reforms in electricity supply
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National task force kicks off major reforms in electricity supply

Oct 30, 2024

Consumers will soon buy electricity from multiple suppliers, decreasing reliance on a single distributor

The National Task Force has launched a series of reforms in the power sector, confirmed the chairman on Wednesday.

Owais Laghari, the Chairman of the Task Force and Federal Minister for Energy revealed that efforts to privatize distribution companies are underway, along with plans to establish a new power market structure.

The new framework will allow consumers to purchase electricity from various suppliers, reducing dependence on a single distributor.

“The goal of these reforms is to support economic growth in Pakistan while ensuring that citizens have access to affordable and quality electricity,” Laghari stated.

Experts believe these reforms will introduce much-needed innovation and transparency in the power sector, potentially enhancing the quality of life for everyday Pakistanis.

Following widespread protests over skyrocketing electricity bills, in August, Prime Minister Shehbaz Sharif announced the formation of a task force to implement structural reforms in Pakistan’s power sector.

The task force aims to alleviate the financial burden on the government and establish a more efficient, self-sustaining power market.

Power Minister Awais Leghari was appointed as the chairman of the task force, with Special Assistant to the Prime Minister on Power Muhammad Ali serving as co-chairman and Lt. Gen. (Retd) Muhammad Zafar Iqbal as the national coordinator.

The task force also includes Syed Zakaria Ali Shah, a BS-21 officer, and representatives from NEPRA, the Central Power Purchasing Agency, the Private Power and Infrastructure Board, and the Securities and Exchange Commission of Pakistan (SECP).

The task force is authorized to engage experts and consultants from various sectors to support its mandate.

It will focus on proposing measures to ensure the financial and operational sustainability of the power sector while overseeing the development and implementation of an efficient power market.

The task force will also recommend ways to utilize excess capacity to stimulate industrial growth, examine the potential reduction of capacity payments by shutting down certain plants, and investigate the setup costs of IPPs to identify any malpractices or regulatory gaps.

Additionally, it will ensure that IPPs comply with their agreements and work to resolve the issue of circular debt in the energy sector.

The task force’s role extends beyond fact-finding, as it will also be responsible for overseeing the implementation of its recommendations.

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