Amid rising electricity prices and growing public frustration over load shedding, the government has uncovered serious irregularities in power procurement by distribution companies in Pakistan. Officials say electricity was being purchased at unusually high rates outside the national system.
The revelation has raised concerns about transparency, governance, and the rising cost burden on consumers.
Discos Bypass National Grid
According to an official statement, multiple Distribution Companies (Discos) were found purchasing electricity outside the national grid. These transactions were made through direct bilateral contracts with small power producers and captive power plants.
These purchases reportedly ignored the country’s economic merit order system. This system ensures that electricity is generated and distributed at the lowest possible cost.
Instead, Discos allegedly secured power at higher tariffs. This practice has added pressure on already expensive electricity bills.
Role of Regulatory Bodies
The irregular transactions were made without proper coordination with the National Electric Power Regulatory Authority. They also bypassed the Independent System and Market Operator, which is responsible for ensuring fair and efficient power dispatch.
Officials confirmed that the names of the Discos involved have not been disclosed yet. Authorities say this step was taken to allow an independent investigation to proceed without interference.
Government Orders Immediate Action
Awais Leghari has taken strict notice of the issue. He ordered an immediate investigation into the off-merit power purchases.
He also directed all Discos to stop such practices without approval from ISMO. The minister emphasized that all electricity procurement must follow the national merit order system.
Focus on Cost Efficiency
The government has stressed that electricity should be purchased based on the lowest generation cost. This approach is essential to protect consumers from rising tariffs.
Authorities have now instructed Discos to coordinate directly with ISMO. This will ensure that only cost-effective energy sources are included in the national dispatch system.
Strict Compliance Measures Introduced
Following the minister’s instructions, the Power Division has issued new directives. These rules clearly state that no electricity can be purchased outside the approved system.
Any procurement from small or captive producers must first receive explicit approval. Without this approval, such transactions will not be allowed under any circumstances.
Merit Order System Reinforced
Officials have reaffirmed that the merit order principle remains the foundation of Pakistan’s power sector. It ensures that electricity generation follows a transparent and cost-based priority system.
Off-merit purchases are only allowed in rare cases. Even then, they must comply with strict regulatory conditions.
Investigation Underway
An independent inquiry has now been launched. It will examine how and why Discos bypassed established procedures.
The investigation will also assess financial impacts on the national power system. Authorities aim to determine whether consumers were unfairly burdened.
Public Concern Over Rising Bills
The findings come at a time when electricity prices remain a major public concern. Many consumers are already struggling with high utility costs and frequent outages.
Experts say such irregularities could further weaken trust in the power sector. They also warn that poor oversight may increase financial losses for the state.
The government’s crackdown signals a push for reform in the energy sector. Officials are now focusing on transparency, efficiency, and strict regulatory compliance. The outcome of the investigation is expected to play a key role in shaping future power policies in Pakistan.
