NGC BoD constitutes restructuring body to oversee transition
The move follows a letter from the Power Division dated November 20, 2024, regarding the implementation of the Cabinet's decision— communicated on November 6, 2024— to restructure NTDC.
Maria Rafique, Chief Law Officer (CLO) of NGC, informed the Power Division that, in compliance with the Cabinet directive, NTDC shareholders in their 2nd Extraordinary General Meeting on December 26, 2024, unanimously resolved to change the company's name to National Grid Company of Pakistan Limited, subject to approvals from the Securities and Exchange Commission of Pakistan (SECP).
Cabinet decides to divide NTDC into two entities
To facilitate this transition, the CLO was authorised to carry out all necessary legal and procedural requirements.
Nepra issued its no-objection to the proposed name change on February 24, 2025, in response to the application submitted on December 19, 2024. Subsequently, SECP formally approved the change through a Certificate of Incorporation on March 20, 2025 (Identification No. 0039611).
Simultaneously, the Energy Infrastructure Development and Management Company (EIDMC) was also incorporated. The Ministry of Energy (Power Division) submitted incorporation documents, including the Articles and Memorandum of Association, to SECP on January 1, 2025. SECP issued the Certificate of Incorporation on January 3, 2025, under Section 16 of the Companies Act, 2017, legally establishing the company.
Following incorporation, the CLO communicated post-incorporation steps via emails dated January 15, January 28, February 25, and March 28, 2025, to relevant officials in the Power Division under the framework of the State-Owned Enterprises Act and SECP regulations.
On the matter of the Independent System & Market Operator (ISMO), NGC's Legal Department facilitated its incorporation by preparing the Articles and Memorandum of Association and ensuring full regulatory compliance. ISMO was formally incorporated on December 4, 2024. To support ISMO's operationalization, NGC allocated legal, finance, and HR resources with effect from January 1, 2025. Additionally, NTDC, CPPA-G, and ISMO jointly submitted applications to Nepra for the transfer and acquisition of relevant licenses on December 31, 2024.
Business Transfer Agreements (BTAs) and Service Level Agreements (SLAs) between NTDC and ISMO, as well as between CPPA-G and ISMO, have been approved by the respective Boards and signed by all parties involved.
Although the Power Division's directive only required NTDC's Board to implement the transitions to NGC and EIDMC, the company also proactively supported the incorporation and initial operations of ISMO.
The restructuring is progressing in line with the Cabinet's directives, with major milestones already achieved. The transition to the National Grid Company of Pakistan Limited remains ongoing, including steps such as organisational rightsizing.
'We have been regularly updating the Power Division on restructuring progress as required. Further updates will be provided upon completion of the remaining formalities,' said Maria Rafique, adding that the BoD of NGC has formally established a Restructuring Committee to guide the transition.
Nepra has also issued licenses to the newly established entities, supporting the restructuring process and marking a significant advancement in Pakistan's power sector reform agenda.
Copyright Business Recorder, 2025
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