ISLAMABAD: The government is poised to significantly curtail the authority of the National Electric Power Regulatory Authority (NEPRA) through amendments to key power-sector laws, a move that critics say could effectively reduce the regulator to a symbolic body, Newzshews has learnt reliably.
Energy-sector experts warn that the planned changes to the NEPRA Act, 1997, and the Electricity Act, 1910, risk eroding the regulator’s institutional independence while consolidating decision-making powers within the Power Division. According to informed sources, the amendments replace the term “Federal Government” with “Power Division,” “appropriate authority,” or “division concerned” across several critical provisions. This shift would grant the Power Division a more direct role in approving, revisiting, and notifying regulatory decisions—particularly those related to electricity tariffs.
The proposed changes come against the backdrop of longstanding tensions between the Power Division and NEPRA. Senior officials have reportedly criticised the regulator for exercising what they describe as quasi-judicial authority, while the Power Minister has expressed dissatisfaction with a number of NEPRA’s recent determinations. Under the revised framework, NEPRA would continue to determine tariffs, rates, and charges for electricity generation, transmission, and distribution. However, the notification and implementation of these determinations would fall under the purview of the relevant division, which would have specified timelines to seek reconsideration or file appeals. If the division fails to act within the stipulated period, NEPRA may proceed with notification, though such decisions would remain subject to subsequent revisions.
The amendments also empower the Power Division to seek reconsideration of tariff determinations affecting public-sector distribution companies and to influence quarterly tariff adjustments linked to capacity payments, transmission and distribution losses, and policy guidelines issued by the government.
Similar changes are proposed to the Electricity Act, 1910, where the authority of the “Federal Government” in matters such as dispute resolution, administrative directions, and service of notices is to be replaced by the “division concerned,” further expanding the division’s administrative oversight.
Commenting on the proposed amendments, a power-sector expert cautioned that while the government may frame the changes as necessary for better coordination and policy alignment, the net effect could be the subordination of NEPRA to the executive. “Independent regulators are meant to shield tariff-setting from political and fiscal pressures. Weakening that independence risks undermining investor confidence and regulatory credibility,” the expert said.
A BILL to amend the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (ACT No. XL of 1997)
WHEREAS, it is expedient further to amend the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (ACT No. XL of 1997), for the purpose hereinafter appearing:
It is hereby enacted as follows:-
- Short title, extent, and commencement.- (1) This Act may be called the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act, 2025.
(2) It shall come into force at once.
- Amendment of section-2, Act XL of 1997.- In the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (ACT No. XL of 1997) hereinafter referred to as “the said Act”, in section-2, after clause (viii), the following shall be inserted, namely:-
“(viiia) Division concerned means the Division to which the business of the Act stands allocated”
- Amendment of section-7, Act XL of 1997.- In the Regulation of Generation, Transmission and Distribution of Electric Power, 1997 (ACT No. XL of 1997), hereinafter referred to as the said Act, in section-7, in sub-section (3), in clause (a) for the words “Federal Government”, the words “Division concerned” shall be substituted.
- Amendment of section-31, Act XL of 1997.- (1) In the said Act, in section 31, in sub-section (7), for the words “Federal Government”, occurring for the first, second and third time, the words “Division concerned” shall be substituted;
(2) In the said Act, in section 31, in sub-section (7), for the word “falls” shall be substituted with the word “fails”.
(3) In the said Act, in section 31, in sub-section (7), in the proviso,-
- in clause (i), for the words “Federal Government”, wherever occurring, the words “Division concerned” shall be substituted;
- in clause (ii), for the words “Federal Government”, occurring for the second,
third, fourth, fifth and sixth time, the words “Division concerned” shall be substituted; and
- in clause (iii), for the words “Federal Government”, wherever occurring, the
words “Division concerned” shall be substituted;
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