4-member committee notified to finalise process for restructuring NTDC

ISLAMABAD: In a new move, the government has constituted a four-member committee under the directive of Prime Minister Shehbaz Sharif to restructure the National Transmission & Dispatch Company (NTDC).

The constitution of the committee comprising Minister for Economic Affairs, Minister Power Division, Secretary Power Division and former MD NTDC Dr Fiaz Ahmad Chaudhry was notified on May 21, 2024. The committee has been mandated to finalise the way forward for restructuring the NTDC and submit recommendations for consideration of the prime minister. The committee will complete its task by August 31, 2024, says the notification.

The NTDC in its present shape is responsible for the transmission lines for smooth supply of electricity, asset management and system operations, which is a classic example of conflict of interests. And there is no check on the output of NTDC.

In the last winter, the end consumers had to pay Rs7 per unit in the head of FCA (fuel charges adjustment) just on account of the failure of NTDC to evacuate cheaper electricity from the southern part of the country to the load centre Punjab because of its transmission constraints. Since the system operator, the National Power Control Cell (NPCC), was under the NTDC umbrella, the NTDC management evaded any punitive action. Sources said it was the reason that the government wanted immediate separation of the NPCC as system operator from NTDC.

According to the official sources, the NPCC will be detached from NTDC. Under the proposed plan, the NPPC as the system operator will be merged with market operator, which is to be separated from the CPPA-G (Central Power Purchase Agency) and a new entity will be developed under the name of ISMO (Independent System Market Operator) to deal with system operations. The ISMO will have a greater say in dealing with long-term integrated system planning and market management and settlement functions, which is aligned with legal, policy and regulatory regime in place.

More importantly, the PTIDC (Power Transmission Infrastructure Development Company) will deal with EHV (ultra-high voltage)/PD (Project Delivery) GSC, Design, Protection, Procurement and a new SPV (special purpose vehicle) is to be created.

The NTMC (National Transmission Management Company) will deal with assets management and a new SPV will be created.