ISLAMABAD: The federal government has reportedly finalised a set of amendments to the NEPRA Act, 1997, and the Electricity Act, 1910, which could significantly reduce the autonomy of the National Electric Power Regulatory Authority (NEPRA) by placing it effectively under the control of the Power Division.
Well-informed sources told Business Recorder that the proposed changes would replace references to the “Federal Government” with the “Power Division,” “division concerned,” or “appropriate authority” in key regulatory provisions, giving the Power Division greater oversight over tariff approvals and other regulatory decisions.
Sources said the Power Division’s senior leadership has long been at odds with the regulator on several issues, with some officials openly criticising NEPRA members for “behaving like judges.” The power minister has also reportedly expressed dissatisfaction with a number of NEPRA’s recent determinations.
Under the proposed amendments to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, Section 3(a) would continue to empower NEPRA to determine tariffs, rates, charges, and other terms and conditions for electricity supply. However, these determinations would be recommended to the relevant division for notification, rather than to the Federal Government.
Revisions to Section 31(7) would require the division concerned to notify NEPRA-approved tariffs—whether individual or uniform—in the official Gazette within 30 days of intimation by the Authority. If the division fails to notify the tariff or refer it back for reconsideration within this period, NEPRA would be authorised to enforce its approved tariff through direct notification, subject to any later adjustments.
Under Section 31(7)(i), the division concerned would be allowed, within 30 days, to seek reconsideration of NEPRA’s tariff determinations for public-sector distribution and supply licensees on issues common to them. NEPRA would then be required to complete the reconsideration within a further 30 days.
Similarly, Section 31(7)(ii) would empower NEPRA to carry out quarterly tariff adjustments within 15 days, covering capacity and transmission charges, system losses, variable operation and maintenance costs, and policy guidelines issued by the division concerned. These adjusted tariffs would be shared with the division prior to Gazette notification. The division could seek reconsideration within 15 days; otherwise, NEPRA would notify the adjusted tariff. If reconsideration is requested, the Authority would be required to decide within 15 days and inform the division before notification.
Under Section 31(7)(iii), the division concerned would retain the option to file an appeal instead of seeking reconsideration. However, once reconsideration is sought, the right to appeal on that matter would lapse. No changes have been proposed to Section 31(7)(iv).
Parallel amendments have also been proposed to the Electricity Act, 1910, again replacing the term “Federal Government” with “appropriate authority” or “division concerned.”
Under the revised Section 32(2), disputes between an operator and the telegraph authority over the placement or operation of electric supply lines would be referred to the division concerned, which could order necessary alterations to ensure legal compliance. Amendments to Section 53(1)(a) would govern the service of notices and documents, stipulating that where the addressee is a federal or provincial government, service would be made at the office designated by the relevant division.
Commenting on the proposed changes, a power sector expert warned that the amendments appear designed to make NEPRA a subordinate entity of the Power Division, a shift that could seriously undermine the regulator’s independence and its ability to make impartial tariff determinations.
Story by Mushtaq Ghumman
