Islamabad: Federal Minister for Power Division, Sardar Awais Ahmed Khan Leghari, has initiated an inquiry into the procurement of power from Small Power Producers (SPPs) by Distribution Companies (DISCOs) at rates exceeding the national merit order. The action follows a review of DISCOs’ power off-take practices and aims to align them with regulatory codes.

According to Press Information Department, the minister has directed an immediate halt to practices inconsistent with National Electric Power Regulatory Authority (NEPRA) guidelines. The directive mandates DISCOs to coordinate with the Independent System and Market Operator (ISMO) to ensure power procurement aligns with the Economic Merit Order principles, prioritizing cost-effectiveness for consumers.

The Power Division has issued instructions to all DISCOs, stipulating that power procurement from SPPs must adhere to the national merit order unless explicitly approved by ISMO. This move is intended to ensure that electricity off-take remains within the prescribed cost-efficient framework.