Islamabad: The National Electric Power Regulatory Authority (NEPRA) has approved the Distribution Investment Plan (DIP) 2025–30 of Gujranwala Electric Power Company (GEPCO), introducing annual and mid-term “reopener” provisions to ensure flexibility and need-based investment decisions amid evolving power sector dynamics.
During the hearing, GEPCO maintained that the proposed privatization of power distribution companies (DISCOs), including itself, remains a policy matter within the government’s domain. The utility stated that the DIP has been developed on a “going concern” basis, following prudent planning principles and established practices both locally and internationally.
The primary objective of the plan is to ensure uninterrupted, efficient, and reliable electricity supply to consumers, regardless of any future structural or ownership changes.
GEPCO highlighted that privatization could lead to shifts in corporate governance, investment priorities, and operational strategies. To address this, it proposed incorporating a “reopener” mechanism in the DIP framework, allowing revisions after privatization to align with the strategic direction of new investors or management.
According to the company, this flexibility would reduce investor uncertainty by ensuring they are not bound to pre-privatization commitments that may not match future business models. At the same time, it would safeguard consumer interests by keeping post-privatization investments under regulatory oversight and performance benchmarks.
GEPCO further noted that treating the DIP as a “living document” would help maintain continuity in planning while enabling a smooth transition from public to private management, particularly in areas such as network expansion, loss reduction, technology upgrades, and customer service improvements.
The utility argued that such an adaptive framework would also send a positive signal to potential investors, demonstrating a supportive regulatory environment aligned with international best practices.
In its decision, NEPRA observed that the DIP has been formulated in line with sound planning standards, ensuring reliable electricity supply irrespective of ownership transitions. The regulator reiterated that privatization of DISCOs falls strictly under the government’s jurisdiction, while its own mandate is to ensure a safe, viable, and efficient power distribution system.
NEPRA emphasized that the plan was assessed purely on technical and regulatory grounds, focusing on optimal and justified investments. Given changing demand patterns, macroeconomic conditions, and sectoral requirements, the authority approved GEPCO’s DIP 2025–30 with built-in review mechanisms to maintain regulatory flexibility and responsiveness to future developments.
By Mushtaq Ghumman
