NEPRA could come under Power Division’s control, as per govt’s latest amendments

ISLAMABAD: The government has reportedly finalised amendments to the NEPRA Act, 1997, and the Electricity Act, 1910, aimed at making the National Electric Power Regulatory Authority (NEPRA) effectively subordinate to the Power Division.

Under the proposed changes, the term “Federal Government” is being replaced with “Power Division” or “Division concerned” for the approval of various regulatory proposals, well-informed sources told Business Recorder. Sources said the top leadership of the Power Division has long been at odds with the power sector regulator on multiple issues, with some officials openly criticising NEPRA members for “behaving like judges.”

The Power minister has also reportedly expressed displeasure over several of the Authority’s decisions. Under the proposed amendments to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, references to the “Federal Government” are to be replaced with the “appropriate authority.”

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Section 3(a) empowers the Authority to determine tariffs, rates, charges, and other terms and conditions for the supply of electric power services by generation, transmission, and distribution companies, and to recommend these to the relevant division for notification.

Under the revised Section 31(7), notification of NEPRA-approved tariffs or uniform tariffs—along with rates, charges, and other terms and conditions for the supply of electric power services—shall be made in the official Gazette by the division concerned within 30 days of intimation by the Authority. If the division fails to notify the tariff or refer the matter back to NEPRA for reconsideration within the specified time, the Authority may direct immediate application of its approved tariff through notification, subject to any subsequent adjustments arising from reconsideration requested by the division.

Section 31(7)(i) provides that the division concerned may, within 30 days of receiving NEPRA’s intimation regarding approved tariffs of public-sector distribution and supply licensees, require the Authority to reconsider its determination on issues common to these licensees. NEPRA would then be required to complete the reconsideration within 30 days and inform the division accordingly.

Under Section 31(7)(ii), NEPRA may make quarterly tariff adjustments within 15 days on account of capacity and transmission charges, transmission and distribution losses, variable operation and maintenance costs, and policy guidelines issued by the division concerned. The adjusted tariff would be intimated to the division prior to Gazette notification. The division may seek reconsideration within 15 days, failing which NEPRA shall notify the adjusted tariff in the official Gazette. If reconsideration is sought, NEPRA must decide the matter within 15 days and intimate the division before notification.

Section 31(7)(iii) allows the division concerned, in lieu of seeking reconsideration, to file an appeal.

READ MORE:NEPRA could come under Power Division’s control, as per govt’s latest amendments

However, once a reconsideration request is filed, the division will not be entitled to subsequently appeal the decision on that reconsideration. No changes have been proposed to Section 31(7)(iv).

Similarly, amendments have been proposed to the Electricity Act, 1910, replacing the term “Federal Government” with “appropriate authority” or “Division concerned.”

Under the revised Section 32(2), any dispute between an operator and the telegraph authority regarding the placement or operation of electric supply lines shall be referred to the division concerned, which may direct the operator to make necessary alterations to comply with the law. Amendments to Section 53(1)(a) relate to the service of notices, orders, or documents, stipulating that where the addressee is the Federal or Provincial Government, such service shall be made at the office designated by the division concerned.

Commenting on the proposed amendments, a power sector expert said the move appears aimed at making NEPRA a subordinate entity of the Power Division, which would significantly undermine the regulator’s ability to make independent tariff determinations.

Copyright Business Recorder, 2026