LAHORE: The National Electric Power Regulatory Authority (Nepra) has raised serious concerns over systemic issues impacting the performance of Pakistan’s power distribution companies (Discos), prompting the launch of a comprehensive review backed by structured consultations with all key stakeholders.
In a recently issued statement, Nepra identified three critical areas requiring immediate attention: the need for a region-specific Time of Use (ToU) tariff structure, a detailed evaluation of net metering’s financial and operational impact on Discos, and the potential deployment of mini and micro grids for remote or commercially unviable regions.
To kick off this reform process, Nepra has circulated draft Terms of Reference (TORs) to all Discos and K-Electric, seeking their written feedback by August 4. A consultative session will follow in Islamabad on August 11 to finalize the TORs. Once approved, each Disco will be required to hire consultants to carry out jurisdiction-specific studies on the identified issues.
Nepra emphasized that the current uniform ToU tariff structure fails to reflect local demand patterns and could lead to inequitable and inefficient billing. A localized approach, the regulator argued, would enhance fairness and operational efficiency.
Regarding net metering, while Nepra acknowledged its success in promoting consumer empowerment and grid support, it underscored the need for an objective analysis of the system’s broader impacts, including financial viability for Discos and any unintended consequences as adoption expands.
On mini and micro grids, Nepra aims to explore their feasibility in areas where main grid extension is impractical. These small-scale systems could play a key role in expanding energy access to underserved communities.
Nepra had earlier directed all Discos to initiate studies on these topics as part of tariff adjustments for FY25 and FY26. However, progress has been slow, prompting the regulator to take proactive steps by drafting initial TORs and urging swift action.
In addition to written feedback, Nepra has asked Discos and K-Electric to appoint Director Generals as focal persons and to form dedicated internal teams of technical and commercial experts to support the studies.
The regulator reiterated that its goal is to strike a balance between consumer protection and the financial sustainability of distribution companies, ensuring practical, long-term solutions for the country’s power sector.
Story by Khalid Hasnain
