Nepra tightens power sector oversight in 4Q 2025

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) significantly strengthened its regulatory oversight across Pakistan’s power sector during the fourth quarter (October–December) of 2025, issuing major tariff decisions, expanding net-metering capacity, and accelerating enforcement actions against inefficiencies and safety lapses.

According to NEPRA’s quarterly newsletter, the Authority issued a series of important tariff determinations for multiple hydropower projects, including Karot, Malakand-III, Laraib Energy, Chianwali, Marala, Pak Pattan, Star Hydro, and Suki Kinari.

In addition, decisions on fuel charge adjustments (FCA) and periodic tariff revisions for ex-WAPDA distribution companies (XWDISCOs) were finalised, alongside a ruling on the federal government’s incremental consumption package for industrial and agricultural consumers.

The regulator also addressed key matters related to K-Electric, issuing several decisions on tariff reviews, distribution functions, and write-off claims covering previous multi-year tariff periods.

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In a major development for renewable and distributed energy, NEPRA granted 2,202 net-metering licences during the quarter, adding an installed capacity of over 332 MW. The Authority also published draft Prosumer Regulations 2025, aimed at encouraging consumer participation in electricity generation.

On the consumer side, NEPRA handled an extensive caseload, processing 5,082 complaints and conducting 1,936 hearings across its offices. Additionally, nearly 15,900 complaints were resolved through its ASAAN mobile application, reflecting improved digital engagement with consumers. The Authority also disposed off 42 court-referred cases and decided 536 major complaints through its resolution committees.

The report highlights NEPRA’s continued efforts to operationalise the Competitive Trading Bilateral Contract Market (CTBCM). During the quarter, the Authority approved key regulatory frameworks, including the Final Test Run (FTR), Market Commercial Code (MCC), and agency-related agreements involving the Central Power Purchasing Agency (CPPA-G).

On the enforcement front, NEPRA took strict action against power sector entities for operational failures, safety violations, and excessive load shedding. Fines were imposed on multiple organisations, including K-Electric, National Grid Company (NGC), and several DISCOs, while show-cause notices were issued for non-compliance with safety codes and performance standards.

The Authority also closely monitored generation, transmission, and distribution systems. It tracked performance data from around 150 power plants and reviewed progress on critical infrastructure projects, including grid stations and transmission lines. Legal action was initiated against several distribution companies over high losses, safety incidents, and failure to meet operational targets.

NEPRA further advanced regulatory engagement by holding 97 meetings and 51 public hearings during the quarter, ensuring stakeholder participation in decision-making processes.

In the area of digital transformation, the Authority uploaded 3,509 regulatory documents to its website, enhancing transparency and public access to information.

Administrative reforms also remained a priority, with NEPRA digitizing records, upgrading regional offices, and improving internal processes. The HR department conducted promotion board proceedings and ensured transparent career progression, while the media wing actively engaged with the public through advertisements and press releases.

Overall, the quarter reflects NEPRA’s continued push toward a more transparent, efficient, and accountable power sector, with a strong focus on consumer protection, market development, and enforcement of regulatory standards.

Copyright Business Recorder, 2026