Governments hold talks to whittle Nepra's powers down

The federation and provinces on Friday reportedly held unsuccessful parleys on clipping Nepra wings through Islamabad's "desired" amendments to the Act 1997, which purportedly grants extraordinary power to the regulator, well-informed sources told Business Recorder. However, both federal and provincial governments have agreed to move towards a competitive electricity market regime, consensus was developed on de-licensing generation while at the same time making provision for licencing in areas of trading and retail of electric power.
Presided over by Minister for Water and Power Khawaja Asif, the maiden meeting convened in the light of the Council of Common Interests (CCI) decision was attended by Chief Minister of KPK, Parvez Khattak and Chief Minister Balochistan Sardar Sana Ullah Zehri along with their teams whereas Punjab and Sindh were represented by top bureaucrats. The meeting also discussed issues related to preparation of a new 10-year flood protection plan and long-awaited National Water Policy.
The four provinces have already sent their views on proposed amendments to Nepra Act clause by clause. The provincial stakeholders who always have disputes with the federal government on different policy issues, showed agreement on some of the proposed amendments but continued resisting such amendments which they believe can hurt investment in power sector or create undue hurdles.
An official who closely monitored the meeting told Business Recorder that it was the first meeting on different issues, adding that a series of meetings would be held to evolve consensus on amendments to the Nepra Act. Secretary Water and Power, Younus Dagha, gave a detailed briefing to the participants on the justification of amendments to the Nepra Act, in addition to formulation of a comprehensive flood protection plan and much-delayed National Water Policy.
Asked if a consensus evolved on the proposed amendments to the Nepra Act, he replied "yes, most of the provisions have been agreed upon. A few minor changes will be finalised by technical teams."
After the meeting, Minister for Water and Power Khawaja Asif, accompanied by two Chief Ministers, told the waiting journalists that it was the first meeting in the light of CCI's directives during which positive progress was witnessed subsequent to the assurance to provinces that their interests will be taken care of. "Detailed discussions were held on the matter and more talks will be conducted in order to evolve a consensus on matters pertaining to water and power," he added.
According to an official statement issued by the Ministry of Water and Power, it was mutually agreed that the Nepra law would be amended in order to ensure efficient and reliable power system so as to improve the country's energy security. This would require modernisation of the regulatory framework, and developing Nepra into an institution which meets the highest standards of independence granted to electricity regulators globally.
The representatives of the Federal and Provincial Governments agreed to measures introduced towards strengthening the composition and regulatory powers of Nepra, including introduction of a better qualification criteria for the Chairman and Provincial Nominees on the Authority. At the same time indemnities for acts done in good faith have also been proposed to strengthen the decision making and independence of Nepra, while empowering them with strong tools of regulatory enforcement such as the power to undertake investigations, and impose penalties for violations of the laws governing the electricity sector. These powers did not previously exist in the Nepra Act itself.
In order to reduce the burden of litigation on the civil courts, an Appellate Tribunal comprising technical and financial members, and chaired by a former High Court judge has also been recommended, which is expected to provide independent, speedy and efficient relief to persons aggrieved by an order of Nepra . For enhancing transparency of regulation to better serve consumer interests, the requirement of declaration of direct and indirect conflicts of interests by the Members and Chairman of the Authority, as well as the employees of Nepra have also been inserted.
It was agreed that further discussions on the language of the draft would be held at a technical level for consensus building on the text of the proposed amendments, and include proposals of the Provincial Governments. The consensus draft is proposed to be submitted to the CCI for approval under the constitution and will then be presented before the Parliament.
Talking to media, Chief Minister KPK, Parvez Khattak said that KPK has conveyed its concerns to the federal government. He said decisions will be taken keeping in view the interests of the provinces and the country. Answering a question, Chief Minister Balochistan said that consensus has been evolved on some issues between provinces and the centre in the meeting, and he hoped that positive results will come out of these discussions.