Govt Orders Inquiry Into High-Cost Power Purchases by Discos
The federal government has initiated an independent investigation into electricity purchases made by power distribution companies (Discos) outside the national grid, raising concerns over potential violations of established cost guidelines.
The move follows growing public concern over rising electricity prices and ongoing power outages across the country.
According to an official statement, some Discos were found to be procuring electricity from small power producers and captive power plants through bilateral agreements at rates higher than the approved national tariff. These transactions reportedly bypassed the national grid system and were not processed through the Independent System and Market Operator (ISMO).
Authorities have not disclosed the names of the companies involved or the scale of the purchases, citing the need for transparency during the investigation.
Power Minister Awais Leghari took notice of the issue during a review of operations involving Discos and the market operator. He has directed an immediate halt to such off-merit power procurement practices.
The minister further instructed that all future electricity purchases must comply with the guidelines set by the National Electric Power Regulatory Authority (NEPRA), including the grid code and distribution code.
Additionally, the Power Division has directed Discos to seek prior approval from the Independent System and Market Operator before purchasing electricity from small or captive power plants.
Officials emphasized that electricity from such sources will only be considered if it meets the least-cost criteria under the national economic merit order, ensuring affordability and transparency in power generation and distribution.
