ISLAMABAD: The National Assembly Standing Committee on Cabinet Secretariat has decided to introduce legislation aimed at empowering the National Electric Power Regulatory Authority (NEPRA) with enhanced authority to monitor enforcement, ensure accountability, and take action against power sector entities, with the objective of safeguarding and facilitating consumers.
The committee assigned NEPRA the task of preparing a draft of the proposed legislation to enhance its role and powers and to submit it for approval. The committee emphasised that stringent monitoring of distribution companies was imperative for improving service delivery.
The committee met with Member of the National Assembly (MNA) Malik Ibrar Ahmed in the chair at the NEPRA office on Thursday.
A comprehensive briefing was given to the committee on NEPRA as regulator and its effectiveness, circular debt, energy sector, control of line losses and electricity theft.
Responding to questions from committee members, NEPRA Member (Technical) Sindh, Rafique Ahmed Shaikh, stated that the organisation has a limited role under the existing laws and regulations. He informed the committee that a five-member team is deployed in each distribution company for monitoring purposes. He said that NEPRA has initiated legal proceedings against distribution companies (DISCOs) facing worsening losses. So far, a fine of Rs50 million has been imposed on the Hyderabad Electric Supply Company (HESCO) and Rs25 million on the Sukkur Electric Supply Company (SEPCO), while proceedings against other DISCOs are still underway.
Responding to questions regarding capacity payments to Independent Power Producers (IPPs), Shaikh explained that IPPs are not unique to Pakistan, as such producers exist in other countries as well. He said, “We signed agreements with IPPs on capacity payments because, at that time, there was a shortage of electricity and Pakistan urgently needed additional power. However, now we have sufficient generation capacity.” He further remarked, “The electricity problems cannot be resolved without prioritising distribution companies (DISCOs). For instance, we have set a target of 8 percent line losses for the Islamabad Electric Supply Company (IESCO). Any losses beyond this limit ultimately add to the circular debt.”
While briefing the committee, Senior Advisor (Legal) Mian Ahmad Ibrahim said that in June 2024, electricity consumers across Pakistan received unusually high bills. He informed the committee that NEPRA investigated the issue and found that the problem arose because some distribution companies did not follow the standard 30/31-day billing cycle. He said that in cases of delayed meter readings, the failure to adjust billing days also resulted in excessive charges. He added that all affected bills were subsequently rectified, and consumers were granted relief accordingly.
He informed that a total of 1.58 million consumers were affected by overbilling, with Rs3.55 billion adjustments made to provide relief. He said that among them, 434,856 consumers of Multan Electric Power Company (MEPCO) faced Rs961 million in overbilling, while 371,107 consumers of Gujranwala Electric Power Company (GEPCO) were overbilled by Rs892 million. Similarly, 178,516 consumers of Lahore Electric Supply Company (LESCO) were affected, he said. He added that other distribution companies involved included FESCO, HESCO, PESCO, QESCO, SEPCO, K-Electric, and IESCO.
He said that the aggrieved electricity consumers may approach NEPRA through digital application free of charge.
About quarterly and monthly relief, he said that a negative adjustment of Rs1.881/kwh has been approved. He said that relief is being passed on billing months August 2025 to October 2025.
He said that defective meters were replaced immediately to prevent average billing. He said that the NEPRA also sent notices to the DISCO to take action against executive engineers (XENs) found violating the Consumer Services Manual (CSM).
On the issue of monitoring and controlling line losses and theft, Mian Ahmad Ibrahim informed the committee that NEPRA has a clear policy, whereby, only technical losses are recognised in tariff determinations. He explained that commercial losses resulting from theft and non-recovery are not passed on to consumers; instead, the burden rests with the DISCOs.
Regarding affordable electricity supply, he stated that for the financial year 2025–26, the NEPRA has determined an average national tariff of Rs34/kWh, compared to Rs35.5/kWh in the previous financial year. This reflects a reduction of Rs1.5/kWh, directly benefiting consumers.
About circular debt, he said that as per the Ministry of Energy’s report for 30th of June 2025, the circular debt stands at Rs1.614 trillion. He said that within this stock, operational inefficiencies of DISCOs continue to play a significant role: excess Transmission and Distribution (T&D) losses Rs265 billion and under recoveries Rs132 billion. He said that operational inefficiencies of DISCOs continue to play a significant role.
The committee felt the need for improving the overall performance of the power sector so that consumers receive uninterrupted and affordable electricity.
The committee directed NEPRA to closely monitor DISCOs to improve their performance and ensure that they adhere to the regulatory framework. The committee also directed NEPRA to oversee restoration of electricity infrastructure demanded due to floods and rains.
The committee decided to pending its discussion on two private members bill seeking amendments in the Civil Servants Act, 1973 to restrict re-employment after retirement till its next meeting. The committee asked the movers of the bill to comprehensively brief the committee about the rationale behind moving that amendment. The committee also pended discussion on another private members bill titled Civil Servants Amendment Bill till final outcome of the deliberations of secretary’s committee and presentation of report to the prime minister.
The meeting was attended by MNAs; Tahira Aurangzeb, Nuzhat Sadiq, Dr Nelson Azeem, Farah Naz Akbar, Pir Ameer Ali Shah Jeelani, Nawabzada Mir Jamal Khan Raisani, Khurram Munawar Manj, Syed Raza Ali Gillani, Shandana Gulzar Khan, Shahida Begum and Rana Ansar, Muhammad Aslam Ghumman through Zoom, Movers; Noor Alam Khan, MNA, Sahibzada Sibghatullah, MNA, Usama Ahmed Mela and the special secretary, Cabinet Division and special secretary Establishment Division and other officers of other concerned departments also attended the meeting.
ISLAMABAD: The National Assembly Standing Committee on Cabinet Secretariat has decided to introduce legislation aimed at empowering the National Electric Power Regulatory Authority (NEPRA) with enhanced authority to monitor enforcement, ensure accountability, and take action against power sector entities, with the objective of safeguarding and facilitating consumers.
The committee assigned NEPRA the task of preparing a draft of the proposed legislation to enhance its role and powers and to submit it for approval. The committee emphasised that stringent monitoring of distribution companies was imperative for improving service delivery.
The committee met with Member of the National Assembly (MNA) Malik Ibrar Ahmed in the chair at the NEPRA office on Thursday.
A comprehensive briefing was given to the committee on NEPRA as regulator and its effectiveness, circular debt, energy sector, control of line losses and electricity theft.
Responding to questions from committee members, NEPRA Member (Technical) Sindh, Rafique Ahmed Shaikh, stated that the organisation has a limited role under the existing laws and regulations. He informed the committee that a five-member team is deployed in each distribution company for monitoring purposes. He said that NEPRA has initiated legal proceedings against distribution companies (DISCOs) facing worsening losses. So far, a fine of Rs50 million has been imposed on the Hyderabad Electric Supply Company (HESCO) and Rs25 million on the Sukkur Electric Supply Company (SEPCO), while proceedings against other DISCOs are still underway.
Responding to questions regarding capacity payments to Independent Power Producers (IPPs), Shaikh explained that IPPs are not unique to Pakistan, as such producers exist in other countries as well. He said, “We signed agreements with IPPs on capacity payments because, at that time, there was a shortage of electricity and Pakistan urgently needed additional power. However, now we have sufficient generation capacity.” He further remarked, “The electricity problems cannot be resolved without prioritising distribution companies (DISCOs). For instance, we have set a target of 8 percent line losses for the Islamabad Electric Supply Company (IESCO). Any losses beyond this limit ultimately add to the circular debt.”
While briefing the committee, Senior Advisor (Legal) Mian Ahmad Ibrahim said that in June 2024, electricity consumers across Pakistan received unusually high bills. He informed the committee that NEPRA investigated the issue and found that the problem arose because some distribution companies did not follow the standard 30/31-day billing cycle. He said that in cases of delayed meter readings, the failure to adjust billing days also resulted in excessive charges. He added that all affected bills were subsequently rectified, and consumers were granted relief accordingly.
He informed that a total of 1.58 million consumers were affected by overbilling, with Rs3.55 billion adjustments made to provide relief. He said that among them, 434,856 consumers of Multan Electric Power Company (MEPCO) faced Rs961 million in overbilling, while 371,107 consumers of Gujranwala Electric Power Company (GEPCO) were overbilled by Rs892 million. Similarly, 178,516 consumers of Lahore Electric Supply Company (LESCO) were affected, he said. He added that other distribution companies involved included FESCO, HESCO, PESCO, QESCO, SEPCO, K-Electric, and IESCO.
He said that the aggrieved electricity consumers may approach NEPRA through digital application free of charge.
About quarterly and monthly relief, he said that a negative adjustment of Rs1.881/kwh has been approved. He said that relief is being passed on billing months August 2025 to October 2025.
He said that defective meters were replaced immediately to prevent average billing. He said that the NEPRA also sent notices to the DISCO to take action against executive engineers (XENs) found violating the Consumer Services Manual (CSM).
On the issue of monitoring and controlling line losses and theft, Mian Ahmad Ibrahim informed the committee that NEPRA has a clear policy, whereby, only technical losses are recognised in tariff determinations. He explained that commercial losses resulting from theft and non-recovery are not passed on to consumers; instead, the burden rests with the DISCOs.
Regarding affordable electricity supply, he stated that for the financial year 2025–26, the NEPRA has determined an average national tariff of Rs34/kWh, compared to Rs35.5/kWh in the previous financial year. This reflects a reduction of Rs1.5/kWh, directly benefiting consumers.
About circular debt, he said that as per the Ministry of Energy’s report for 30th of June 2025, the circular debt stands at Rs1.614 trillion. He said that within this stock, operational inefficiencies of DISCOs continue to play a significant role: excess Transmission and Distribution (T&D) losses Rs265 billion and under recoveries Rs132 billion. He said that operational inefficiencies of DISCOs continue to play a significant role.
The committee felt the need for improving the overall performance of the power sector so that consumers receive uninterrupted and affordable electricity.
The committee directed NEPRA to closely monitor DISCOs to improve their performance and ensure that they adhere to the regulatory framework. The committee also directed NEPRA to oversee restoration of electricity infrastructure demanded due to floods and rains.
The committee decided to pending its discussion on two private members bill seeking amendments in the Civil Servants Act, 1973 to restrict re-employment after retirement till its next meeting. The committee asked the movers of the bill to comprehensively brief the committee about the rationale behind moving that amendment. The committee also pended discussion on another private members bill titled Civil Servants Amendment Bill till final outcome of the deliberations of secretary’s committee and presentation of report to the prime minister.
The meeting was attended by MNAs; Tahira Aurangzeb, Nuzhat Sadiq, Dr Nelson Azeem, Farah Naz Akbar, Pir Ameer Ali Shah Jeelani, Nawabzada Mir Jamal Khan Raisani, Khurram Munawar Manj, Syed Raza Ali Gillani, Shandana Gulzar Khan, Shahida Begum and Rana Ansar, Muhammad Aslam Ghumman through Zoom, Movers; Noor Alam Khan, MNA, Sahibzada Sibghatullah, MNA, Usama Ahmed Mela and the special secretary, Cabinet Division and special secretary Establishment Division and other officers of other concerned departments also attended the meeting.
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