Federal Cabinet Restructures NTDC into NGC Projects and NGC Assets

The National Transmission and Despatch Company (NTDC) has been a crucial player in Pakistan's energy sector since its establishment in 1998. Originally formed as part of the unbundling of the Water and Power Development Authority (WAPDA), NTDC has been responsible for overseeing the construction and maintenance of high-voltage transmission lines and grid stations across the country. However, over the years, the company has faced numerous challenges, including outdated business processes, inefficient management, and significant project delays that have stretched up to 7-8 years.

In a significant move to address these issues, the Federal Cabinet has recently approved a major restructuring of NTDC. This restructuring will result in the formation of two new entities: the National Grid Company Projects (NGC Projects) and the National Grid Company Assets (NGC Assets). The decision was made following a summary presented by the Power Division on November 6, 2024. The aim of this restructuring is to improve the efficiency and effectiveness of Pakistan's power transmission system.

The newly created NGC Projects will focus on project preparation and implementation, ensuring that energy projects are completed in a timely manner. On the other hand, NGC Assets will be responsible for managing transmission services and overseeing the assets of the company. This division of responsibilities is expected to alleviate some of the challenges that NTDC has been facing, leading to better functional efficiencies and improved oversight.

Furthermore, as part of a broader strategic plan developed by a committee formed by Prime Minister Shehbaz Sharif in April 2024, the restructuring will also see the merging of NTDC’s system operator functions into an Independent System and Market Operator (ISMO). This change is part of an IMF-supported plan aimed at enhancing the independence of the power sector and reducing NTDC’s monopoly over power transmission and market operations.

Additionally, the Central Power Purchasing Company-Guarantee (CPPA-G) will integrate with the National Power Control Center (NPCC), further streamlining operations within the energy sector. The new structure is expected to be fully operational by December 2024, marking a significant step towards a more efficient and transparent power transmission system in Pakistan.

The restructuring of NTDC into NGC Projects and NGC Assets represents a pivotal moment for Pakistan's energy landscape. By addressing the longstanding issues of inefficiency and delays, this initiative not only aims to enhance the operational capabilities of the power sector but also seeks to ensure a more reliable energy supply for the nation. As these changes take effect, it will be crucial for stakeholders to monitor the progress and impact of this restructuring, ensuring that it leads to tangible improvements in the lives of everyday citizens who rely on a stable and efficient power supply.