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Vested interests on the rise in NEPRA ?

by AMG
January 28, 2025
in Energy
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NEPRA okays new financing mechanism for 59 IPPs of different technologies
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ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is currently facing internal turmoil while simultaneously amending its rules. These changes appear aimed at replacing capable officers with individuals chosen by certain members of the Authority, in a bid to avoid challenges to their controversial decisions. Sources told Newzshewz that these amendments are being used by the Authority to install officers who are less likely to question their actions, raising concerns among consumers that decisions are being made to protect the Authority’s leadership rather than the public interest.

The recent proposed amendments have raised eyebrows nationwide. Arif Bilwani, a vigilant power sector analyst from Karachi’s business community, has strongly criticized the proposed changes to NEPRA’s Service Regulations, 2003. Bilwani has submitted his observations and suggestions in response to the proposed amendments, which are open for stakeholder feedback.

Bilwani expressed concern about the lack of transparency in the process. He noted that on January 13, 2025, he submitted comments regarding amendments to the NEPRA (Electric Power Procurement) Regulations, 2022, which were issued through S.R.O. 2070(I)/2024 dated December 24, 2024. At that time, he emphasized the importance of making the proposed amendments public with clear justifications and rationales. Bilwani also suggested allowing stakeholders at least 21 days to review the amendments. Unfortunately, this recommendation appears to have been overlooked in the current process.

Expressing concern over Clauses 12.a and 12.b of the proposed amendments, Bilwani stated that these provisions place undue emphasis on granting special promotions and assigning responsibilities to the senior-most employees, alongside potential adjustments to their remuneration. According to Bilwani, these changes raise several key questions: (i) Why is there no established succession planning within the organization? (ii) Why not consider open-market recruitment or engage professional headhunting firms? (iii) Does this approach align with best practices for ensuring meritocracy and efficiency?

Bilwani believes that Pakistan, with its population of over 240 million, has a vast pool of talented individuals who could potentially perform these roles more effectively than the current personnel.

Regarding speculations and perceptions, Bilwani pointed out that rumors are circulating within the power and energy sectors, suggesting that these amendments might be designed to serve vested interests, benefiting specific individuals. If left unaddressed, this perception could erode public trust in the Authority’s intentions and the regulatory framework as a whole.

Bilwani has put forward the following recommendations to enhance transparency and restore stakeholder confidence: (i) Key positions should be filled through reputable recruitment agencies or headhunters to ensure merit-based selection; and (ii) The Authority should provide clear justifications for the proposed amendments and allow sufficient time for stakeholder feedback. Unconfirmed reports also indicate that special arrangements may be made to confirm certain officials who are on contract, potentially in violation of federal rules and regulations.

Bilwani concluded by expressing hope that his suggestions would be taken seriously and contribute to fostering transparency, fairness, and trust within the power sector. Ends

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