Islamabad: Pakistan’s Energy Minister Awais Ahmad Khan Leghari said this week electricity consumers will be able to buy power from multiple suppliers starting March, as the government moves to implement a new energy market system.
Pakistan’s Cabinet Committee on Energy last October approved the formation of an independent entity to reform Pakistan’s energy market. The new system enables consumers to buy power from multiple suppliers, moving away from the current government-controlled system, where it is the sole buyer of electricity.
Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, which have led to blackouts and high electricity costs.
“The National Assembly was informed today (Wednesday) that the government will not purchase electricity after March this year as authorization has been given for the creation of an Independent Electricity Market,” state broadcaster Radio Pakistan reported on Wednesday. 
Leghari told the lower house of parliament during the National Assembly session’s Question Hour that the Independent Electricity Market will enable consumers to purchase electricity from multiple suppliers.
Pakistan’s government expects the move will reduce the country’s circular debt and stabilize electricity prices, which along with food prices, pushed inflation to a record 38 percent high in May 2023. 
The federal cabinet this week also approved a plan to renegotiate agreements with 14 independent power producers (IPPs), another move aimed at lowering electricity costs and addressing the mounting circular debt. 
The main issue between the government and the IPPs were capacity charges, or payments made to IPPs regardless of electricity consumption, which have exacerbated circular debt, now exceeding Rs2.4 trillion ($8.6 billion), as per the energy minister. 
Pakistan says revised contracts will save the government Rs1.4 trillion ($5 billion) over their duration, translating into annual savings of Rs137 billion ($493.2 million) for consumers.
The government’s renegotiation efforts were influenced by the International Monetary Fund’s reform recommendations, which seek to reduce tariffs and capacity payments to ease fiscal pressure.

JOHANNESBURG: Fast bowler Anrich Nortje was on Tuesday ruled out of the Champions Trophy because of a back injury.
The latest injury setback for the 31-year-old was announced by Cricket South Africa a day after he was named in his country’s 15-man squad for the tournament in Pakistan next month.
Nortje, at his peak the fastest bowler in international cricket, underwent a scan on Monday, according to a statement by CSA, “which revealed the extent of the injury.”
The statement did not specify the exact nature of the injury.
Nortje, who has played in 19 Tests, 22 one-day internationals and 42 T20 internationals, has not played any international cricket since the final of the T20 World Cup in Barbados last June.
He had been in line to make a comeback against Pakistan last month but suffered a broken toe while batting in the nets.
Nortje was also ruled out of the ongoing SA20 franchise competition in which he was due to play for Pretoria Capitals.
CSA said a replacement would be named later.