ISLAMABAD: Energy Minister Awais Khan Leghari announced the dissolution of the National Transmission and Dispatch Company (NTDC) on Saturday, dividing it into three companies with specific tasks.

Addressing a news briefing, the minister said the NTDC has been divided into three entities — the Independent System Market Operator, the National Grid Company, and the Energy Infrastructure and Development Management Company (EIDMC).

Meanwhile, the National Grid Company would continue the system operations of NTDC.

While accusing NTDC of creating hurdles and challenges in the power sector, the minister said some officials were even involved in power theft.

Leghari blames inefficient management for power sector woes

Sharing the charge-sheeting, the minister said NTDC has promoted inefficiency, failed to curb corruption and caused undue delay in various projects.

He said the Independent System Market Operator would look into market sales and purchases and end the state’s monopoly on consumer electricity sales.

He added that EIDMC would ensure the timely completion of projects and work to end flaws in the distribution system. The minister said that due to NTDC, a power project scheduled to be completed in 2016 was delayed until 2020.

He said due to prolonged delays, the costs of ongoing projects surged, and the masses would have to bear the price of NTDC’s laziness. He claimed that due to NDTC’s inefficiency, the cheap power projects remained closed while costly projects were launched.

Responding to a question about independent power producers (IPPs), he said agreements with 18 more IPPs were being renegotiated.

“Soon, the government will look into wind and solar IPPs, and later, the government will look into state-run projects, “ Mr Leghari said, adding that the government was completing its promises and that these steps will boost transparency and reforms in the energy sector. The minister also claimed that power theft had been reduced significantly and recoveries also showed improvements in the first quarter of FY25.

He announced that the government would further cut electricity tariffs.

Earlier on Nov 6, the federal cabinet approved NTDC restructuring by dividing it into several working entities.

Published in Dawn, November 10th, 2024