NEPRA approves five-year investment plan for Gujranwala Electric Power Company

The National Electric Power Regulatory Authority has approved the Distribution Investment Plan (DIP) 2025–30 of Gujranwala Electric Power Company, allowing annual and mid-term review reopeners to ensure need-based investments and flexibility in response to changing sector conditions, Business Recorder reported. 

The approval follows a hearing in which GEPCO stated that the proposed privatization of distribution companies, including itself, remains a policy matter under the government’s jurisdiction. The company said the investment plan has been prepared on a going-concern basis in line with established planning practices.

GEPCO maintained that the plan aims to ensure uninterrupted, efficient, and reliable electricity supply regardless of any future ownership or structural changes. It added that privatization could lead to shifts in governance, investment priorities, and operational strategies.

To address this, GEPCO proposed incorporating a reopener provision in the plan, enabling revisions after privatization to align with the strategic direction of new management or investors. The company stated that such flexibility would signal an adaptive regulatory framework to potential investors while maintaining service quality and system performance.

According to GEPCO, the reopener mechanism would reduce investor uncertainty by avoiding binding commitments made before privatization. It would also protect consumer and sector interests by keeping future investments under regulatory oversight and performance benchmarks.

The company further noted that the mechanism would ensure continuity in planning while facilitating transition to private management, which may adopt different approaches to network expansion, loss reduction, and technology upgrades. It described the DIP as a “living document” that balances immediate operational needs with anticipated changes after privatization.

The regulator observed that the plan has been developed based on prudent utility practices to ensure uninterrupted electricity supply. It reiterated that privatization of DISCOs is a government policy matter, while its mandate is limited to ensuring a safe, viable, and efficient distribution system.

NEPRA said the investment plan was evaluated strictly on technical and regulatory grounds, focusing on necessary and justified expenditures. It added that the inclusion of annual and mid-term reopeners would allow adjustments in response to demand trends, macroeconomic factors, and sector developments.

With this approval, the regulator concluded that GEPCO’s DIP 2025–30 provides a framework for maintaining operational continuity while allowing flexibility to adapt to future ownership transitions.