ISLAMABAD: The federal government has initiated measures to strengthen the National Electric Power Regulatory Authority (Nepra) as Pakistan’s power sector undergoes significant changes driven by rapid solarisation and shifting electricity demand patterns.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the second meeting of the Steering Committee on Power Sector Regulatory Regime at the Finance Division on Wednesday to review progress on reforms aimed at strengthening the regulatory framework and promoting efficiency, investment, competition and greater private-sector participation.
The committee received an update on the ongoing transformation of Pakistan’s power sector and discussed major developments, including the growing installation of rooftop solar panels by households and changing patterns of electricity consumption.
The finance minister said the evolving power sector required a regulatory framework capable of responding to technological developments while supporting efficiency, investment, consumer interests and greater private-sector participation.
The committee reviewed key structural and emerging challenges facing the sector, including legacy capacity obligations, changing grid-demand patterns, service quality, investment constraints and the need to strengthen incentives for efficiency.
The participants also discussed measures to improve regulatory predictability, ensure better targeting of subsidies and strengthen the overall investment climate to develop a more efficient, competitive and financially sustainable power sector.
Senator Aurangzeb stressed the need for a market structure that provides clearer incentives for efficiency and improved service quality while creating greater space for competition, private investment and private-sector participation.
The committee also considered greater separation between electricity network and supply functions. Under the proposed approach, distribution network operators would focus on the efficient operation and maintenance of networks, while competitive supply businesses would operate under an appropriate regulatory framework.
The reforms come as rapid solarisation and changing consumer behaviour increasingly reshape electricity demand, creating new challenges for the existing regulatory and market structure.
The government aims to develop a regulatory framework that can accommodate these changes while ensuring reliable electricity services, protecting consumer interests and creating a more competitive environment for investment in the power sector.
