By SKM
April 22, 2026
ISLAMABAD: Federal Power Minister Sardar Awais Ahmed Khan Leghari has launched a probe into power distribution companies (DISCOs) for procuring electricity from small and captive producers at rates higher than the national merit order, calling the practice unacceptable and costly for consumers.
According to the press note, the issue surfaced during a high-level review of DISCOs, where it was revealed that electricity was being sourced from Small Power Producers (SPPs) and Captive Power Plants (CPPs) outside the prescribed Economic Merit Order (EMO) framework—potentially inflating generation costs.
Taking swift action, the minister ordered an immediate halt to all such “off-merit” procurement and directed strict compliance with regulatory frameworks set by the National Electric Power Regulatory Authority (NEPRA), including the Grid Code and Distribution Code.
Leghari also directed that a formal inquiry be initiated to fix responsibility and prevent recurrence. Officials have been asked to coordinate with the Independent System and Market Operator (ISMO) to ensure that all power generation— including from SPPs and CPPs— is dispatched strictly on least-cost principles.
Following the minister’s orders, the Power Division has instructed all DISCOs that no electricity may be procured outside the merit order without prior approval from ISMO. Any future off-take must align with the national merit order, determined on the basis of incremental cost of generation.
The move is aimed at tightening oversight in the power sector and protecting consumers from unnecessary tariff burdens. Ends
