ISLAMABAD: The World Bank has reportedly expressed serious concerns over proposed amendments to the Nepra Act, 1997, and the Electricity Act, 1910, warning that the changes could undermine the independence of the National Electric Power Regulatory Authority (Nepra), well-informed sources told Business Recorder.
According to the sources, the proposed amendments seek to replace the term “Federal Government” with “Power Division” or “division concerned” in various regulatory provisions, particularly those related to approvals and notifications. The World Bank has already held one meeting with relevant authorities to convey its reservations, and another engagement is expected in the coming days.
The issue gained further attention on Sunday when Federal Minister for Power Sardar Awais Ahmad Khan Leghari publicly challenged figures presented in Nepra’s State of Industry Report 2024–25, an unusual move that added to concerns about regulatory autonomy.
The business community and industrial sector have also voiced apprehensions, cautioning that the proposed changes could compel Nepra to compromise its independence. Sources further revealed that Prime Minister Shehbaz Sharif has taken notice of the matter and directed the power minister to brief him in detail on the proposed amendments.
Under Section 3(a) of the Nepra Act, the Authority is empowered to determine tariffs, rates, charges, and other terms and conditions for electricity supply by generation, transmission, and distribution companies, and to recommend these for notification. The proposed amendments to Section 31(7) outline revised procedures for the notification, reconsideration, and adjustment of tariffs by the division concerned within specified timeframes, while allowing Nepra to proceed with notification in case of inaction.
The amendments also introduce detailed provisions regarding quarterly tariff adjustments, reconsideration requests, and appeal mechanisms, while retaining existing clauses where no change is proposed. Similar substitutions of “Federal Government” with “appropriate authority” or “division concerned” have been suggested in the Electricity Act, 1910, particularly in sections dealing with dispute resolution and the service of official notices.
Responding to Business Recorder’s queries, the Power Division maintained that the amendments are purely administrative and intended to remove procedural bottlenecks and avoid unnecessary delays. The division said the changes follow the Supreme Court’s Mustafa Impex judgment and subsequent cabinet directions to ensure that routine and technical matters are not unnecessarily escalated to the Federal Cabinet.
The Power Division rejected the notion that the amendments would make Nepra subordinate, insisting that the regulator would remain an independent statutory body with full quasi-judicial authority, reporting administratively to the Federal Cabinet. It also clarified that policy-related powers would continue to rest with the Federal Government and that the proposed changes do not allow the Power Division to issue policy directions independently.
According to the Power Division, the Federal Cabinet has approved the draft amendments, which will now undergo legal vetting before being tabled in Parliament through the Parliamentary Affairs Division in line with the prescribed legislative process.
Story by Mushtaq Ghumman
