The federal government has finalised draft amendments to the NEPRA Act, 1997, and the Electricity Act, 1910, aimed at transferring key regulatory powers from the federal government to the Power Division, a move that could significantly alter the balance between the power sector regulator and the executive, Business Recorder reported.
The proposed changes replace references to the “Federal Government” with the “Power Division” or “division concerned” for the approval and notification of various regulatory decisions. The amendments come amid long-running differences between the Power Division and National Electric Power Regulatory Authority over tariff determinations and regulatory authority.
Under the revised framework, NEPRA will continue to determine tariffs, rates and charges for electricity generation, transmission and distribution companies, but the responsibility for notifying these decisions in the official Gazette will rest with the relevant division.
The amended law requires the division to notify NEPRA-approved tariffs within 30 days or refer them back for reconsideration. If no action is taken within that period, NEPRA would be allowed to direct immediate application of its approved tariff, subject to any later adjustments.
The proposed amendments also allow the division to seek reconsideration of NEPRA’s tariff determinations for public-sector distribution companies within a defined timeframe. NEPRA would be required to complete such reconsideration within 30 days. For quarterly tariff adjustments related to capacity charges, losses, operational costs and policy guidelines, the Authority would intimate the division before notification, with limited time allowed for reconsideration requests.
In addition, the draft changes permit the division to file an appeal instead of seeking reconsideration, but once reconsideration is requested, the right to appeal would lapse. No changes have been proposed to certain existing appeal provisions.
Parallel amendments to the Electricity Act, 1910, also replace references to the federal government with the “appropriate authority” or “division concerned.” These include provisions relating to disputes over electric supply lines and the service of official notices and orders.
Power sector observers say the amendments appear designed to bring the regulator more directly under the administrative control of the Power Division. Critics argue that such changes could weaken NEPRA’s independence and affect its ability to make autonomous tariff and regulatory decisions.
