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Power sector: NEPRA asked to play a ‘more proactive’ role

August 21, 2025
in Business & Finance
Power sector: NEPRA asked to play a ‘more proactive’ role
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KARACHI: The Standing Committee on Cabinet Secretariat asked on Thursday the National Electric Power Regulatory Authority (NEPRA) to play its role “more proactively” as a regulator for ensuring enhance service delivery to electricity consumers.

The committee met under the chairmanship of Malik Ibrar Ahmad, MNA in NEPRA Headquarters, Islamabad.

“The Standing Committee on Cabinet Secretariat has asked National Electric Power Regulatory Authority to play its role more proactively as a regulator for ensuring enhance service delivery to electricity consumers.

“The committee was of the view that stringent monitoring of the distribution companies [Discos] was imperative for enhancing service delivery,” NA Secretariat said in a statement. “The performance of the Regulatory Vis a Vis it’s role as regulator, measure adopted for mitigation of circular debt, complaint resolution mechanism and ensuring affordable electricity to the end users came under discussion.”

Privatisation of Discos: NA panel raises objection to selection criteria

The committee “felt the need for improving the overall performance of the power sector so that consumers receive uninterrupted and affordable electricity”.

It observed that the electricity distribution companies were non responsive to their consumers, especially during calamities.

Billing electricity consumers on pro rata basis or not following billing cycle inflicted financial burdened on consumers, the committee observed.

The panel directed the NEPRA to closely monitor Discos to improve their performance and ensure that they adhere to the regulatory framework. It also directed the NEPRA to oversee restoration of electricity infrastructure demanded due to floods and rains.

A NEPRA official informed the committee that its core functions include licensing, tariff determination, monitoring & enforcement and consumer protection. They said the circular debt emerged as “one of the biggest financial challenges in Pakistan” to the power sector which stood at Rs1,614 billion as per the Ministry of Energy report for June 30, 2025.

“Operational inefficiencies of Discos continue to play a significant role,” the official said.

Regarding market liberalisation and creating competitive market, they said the Competitive Trading Bilateral Contract Market (CTBCM) implementation plan was underway.

The NEPRA official informed that the eligible bulk power consumers could directly contract with generators or competitive suppliers through the CTBCM.

Responding to a query, according to the NA statement, they said the NEPRA was “constantly monitoring performance of Discos and performance of those companies found unsatisfactory had been penalised”.

Concrete steps to address the issues faced by consumers, including power outages, billing errors, and delayed responses to consumer complaints had been taken up, the committee was informed.

The aggrieved electricity consumers might approach the NEPRA through digital application free of charge, the official informed the NA panel.

“The committee decided to pend its discussion on two private Members Bill seeking amendments in the Civil Servants Act, 1973 to restrict re-employment after retirement till it’s next meeting.

Power sector: federal cabinet approves Rs1.275trn bank loan to cut circular debt

“The committee asked the movers of the bill to comprehensively brief the committee about the rationale behind moving that amendment.”

The NA panel 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 Prime Minister Shehbaz Sharif.

Tags: ElectricitynepraPakistan’s energy sectorpower sector
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