ISLAMABAD: According to Group Action No. 10 of the Implementation Roadmap for the Competitive Trading Bilateral Contract Market (CTBCM), approved by the Authority on November 12, 2020, DISCOs were required to submit draft amendments to the Distribution Code for approval by May 2021.
In the first meeting of the Market Implementation and Monitoring Group (MIMG) on December 23, 2020, DISCOs were directed to prepare and submit the draft Distribution Code within the established timelines. However, during the sixth MIMG meeting, DISCOs reported that the World Bank consultant engaged to assist with the Distribution Code was mobilized, but the process took longer than anticipated. They indicated that the final draft would be completed by April 2022, based on the consultant’s work plan.
Despite repeated follow-ups during quarterly and monthly progress reviews throughout 2021 and 2022, NEPRA stated that the draft Distribution Code has still not been submitted. “It has now been over two years since the originally committed date at the MIMG forum, and the matter has been addressed in professional-level meetings held in 2024,” NEPRA noted.
Private Sector Participation (PSP) in DISCOs is a top priority for the Government of Pakistan, making the approval of the revised Distribution Code by January 2025 a crucial prerequisite for the successful implementation of planned PSP reforms. The regulator emphasizes that the World Bank is providing technical assistance to expedite the completion of these regulatory prerequisites.
Consequently, DISCOs have been directed to submit the draft Distribution Code by September 30, 2024. Failure to meet this deadline may result in legal action. Any delays in fulfilling this critical requirement will be the sole responsibility of the DISCOs, who will face all associated consequences, said Masroor Khan, Director of the Registrar Office.
Ends
