Discos from SPPs and CPPs: Leghari takes notice of electricity procurement

ISLAMABAD Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari has taken serious notice of electricity procurement by distribution companies (DISCOs) from Small Power Producers (SPPs) and Captive Power Plants (CPPs) at tariffs higher than the prevailing national merit order.

The issue came to light during a stock-taking exercise of DISCOs, prompting immediate intervention from the Minister.

The minister directed that the practice be discontinued forthwith and aligned with the provisions of the National Electric Power Regulatory Authority (NEPRA) Grid Code and Distribution Code.

He also ordered a formal inquiry into the matter to fix responsibility for deviations from prescribed procedures.

Furthermore, the minister instructed authorities to coordinate with the Independent System and Market Operator (ISMO) to ensure that power generation from SPPs and CPPs is dispatched strictly on the basis of Economic Merit Order (EMO), aimed at minimizing costs for consumers.

Following the minister’s directives, the Power Division has issued instructions to all DISCOs, barring them from undertaking any off-merit procurement from SPPs without prior explicit approval from ISMO.

According to the instructions, electricity off-take from SPPs will only be allowed when it falls within the national merit order, determined on the basis of incremental cost of generation and in accordance with the prescribed mechanism.

According to spokesperson of Power Division, the move is aimed at ensuring transparency, regulatory compliance, and least-cost power generation for consumers across the country.

Copyright Business Recorder, 2026