ISLAMABAD: According to a statement released on Thursday, Pakistan has ordered an investigation after power distribution companies were discovered purchasing electricity from smaller private plants (SPPs) at prices higher than authorized, potentially raising consumer bills. The decision was made when it was discovered that some state-run utilities had been obtaining electricity outside of the national “merit order,” which mandates that less expensive power be used first in order to reduce total expenses. Companies were instructed by Federal Power Minister Awais Ahmed Khan Leghari to immediately stop making such acquisitions and adhere to the National Electric Power Regulatory Authority’s regulations. According to the statement, “the Federal Minister of Power Division… has taken serious notice regarding the off-take of power from Small Power Producers.” In order to guarantee that power is distributed precisely on a least-cost basis, he also directed utilities to work with the Independent System and Market Operator (ISMO) and ordered an investigation into the practice. According to the statement, all distribution companies have been directed by the ministry not to purchase electricity from small private plants at prices that are higher than permitted without first receiving approval from the system operator. It further said that these purchases would only be permitted in situations where the power was among the most affordable options under the national dispatch system.