World Bank raises concerns over proposed amendments to Nepra and Electricity Acts

The World Bank (WB) has expressed concerns over proposed amendments to the Nepra Act, 1997 and the Electricity Act, 1910, warning that they may undermine the independence of the National Electric Power Regulatory Authority (Nepra). 

Business Recorder reported, citing sources, that the WB’s concerns stem from the proposed replacement of the term “Federal Government” with “Power Division” in relation to the approval of regulatory proposals. The change would shift the approval process for various regulatory decisions from the federal government to the concerned division, potentially limiting Nepra's autonomy. 

On Sunday, Power Minister Sardar Awais Ahmad Khan Leghari publicly dismissed figures presented in Nepra’s State of Industry Report 2024-25, fueling the ongoing debate over the amendments.

The World Bank held a meeting with Pakistani authorities to discuss the changes and is expected to hold another session soon. The concerns raised by the World Bank are echoed by Pakistan’s business community and industrial sector, which have warned that the changes could force Nepra to compromise its independence and oversight.

Prime Minister Shehbaz Sharif has also taken notice of the proposed amendments and has directed Minister Leghari to discuss the matter further with him.

The proposed amendments to Section 31(7) of the Nepra Act include provisions for the notification of tariffs and charges, shifting responsibility to the relevant division. If the division fails to notify or refer tariffs back to Nepra, the authority could implement the approved tariff without further delay. 

Additionally, proposed amendments to the Electricity Act, 1910, would replace the term “Federal Government” with “appropriate authority” or “division concerned” in certain provisions, further centralising control.

These proposed changes are part of ongoing reforms, but concerns over their impact on regulatory independence continue to raise alarms across various sectors.