Press Handout: National Transmission & Despatch Company (NTDC) Restructuring
The Government of Pakistan has initiated a comprehensive restructuring of the National
Transmission & Despatch Company (NTDC) to modernize Pakistan’s power sector,
enhance efficiency, and improve access to reliable electricity. This initiative marks a
transformative step towards a more transparent, competitive, and sustainable energy
market.
Key Highlights of the Restructuring Plan:
- Independent System and Market Operator (ISMO)
a) The newly established ISMO will be responsible for integrated power system
planning, operation, and regulation of the electricity market.
b) ISMO will oversee the balance and settlement of the electricity market, creating
a competitive environment where generators and distributors operate
transparently.
c) By merging NTDC’s National Power Control Center (NPCC) and the Central
Power Purchasing Agency (CPPA-G) Market section, ISMO will streamline
operations, supporting modern grid management, competitive electricity pricing,
and consumer choice - National Grid Company of Pakistan (NGCP)
a) NTDC will be rebranded as NGCP and will maintain the national transmission
network’s infrastructure.
b) NGCP will focus on delivering stable and secure transmission services to diverse
regions, meeting the demands of Pakistan’s economy while ensuring reliable
power for distribution companies (DISCOs) - Energy Infrastructure Development and Management Company (EIDMC)
a) A dedicated Project Company will lead capital project development, adhering to
international standards for rapid deployment of critical energy infrastructure.
b) This new entity aims to attract private sector investment, streamlining the
execution of major projects to accelerate the expansion of Pakistan’s power grid
Benefits of ISMO and Market Reforms for Consumers and Businesses
Efficiency and Lower Prices: ISMO will optimize the dispatch of power using advanced
technology, balancing supply and demand in real-time. This optimization reduces
operational costs, minimizes waste, and brings down electricity prices through
increased competition among providers.
Consumer Choice and Reliability: The ISMO-managed competitive market allows
consumers, including businesses and households, to choose their electricity supplier
based on cost, service quality, or sustainability. Additionally, ISMO’s real-time grid
management reduces the risk of blackouts, ensuring stable power for everyone.
Encouraging Green Energy: ISMO’s neutral access policy for all electricity generators
promotes renewable energy by leveling the playing field for new and smaller providers.
This enables a cleaner energy mix, giving consumers more green energy options while
fostering sustainability.
Commitment to Long-Term Policy Stability
This restructuring plan is designed for long-term implementation, with policy
consistency aimed at enhancing investor confidence and enabling consumers to make
well-informed choices for the future.
The NTDC restructuring embodies the government’s commitment to creating a resilient,
efficient, and consumer-oriented power sector that will play a crucial role in Pakistan’s
economic growth. This effort is a critical part of the journey toward a sustainable energy
future for Pakistan.
