Electricity laws: NA panel approves 2 amendments sans debate

ISLAMABAD: The National Assembly Standing Committee on Power on Tuesday approved two amendments to electricity laws without debate, aimed at replacing the term “federal government” with “appropriate authorities” to expedite decision-making and facilitate open access and wheeling for the timely commencement of business-to-business (B2B) electricity market transactions.

The meeting was presided over by Sheikh Aftab Ahmed, MNA, in the absence of Committee Chairman Muhammad Idrees, who was in his native town.

The Power Division presented details of two proposed amendments: (i) the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2026, and (ii) the Electricity (Amendment) Bill, 2026.

READ MORE: NEPRA introduces “Concurrence Regulations 2026” for power projects

According to the Power Division, the amendments to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (Act No. XL of 1997), are intended to align the statutory framework with the evolving structure of the power sector.

The proposed changes seek to replace references to the “federal government” with appropriate authorities, rationalise regulatory functions, and improve administrative efficiency in line with the Rules of Business, 1973.

To facilitate open access and wheeling, and to enable the timely launch of a competitive B2B electricity market, the amendment proposes reducing the notice period for bulk power consumers to discontinue electricity procurement from one year to two months under Section 22(2) of the Act.

The Power Division noted that the existing notice requirement has become a procedural impediment to market liberalisation and does not reflect current sector realities. The amendments also propose updating statutory terminology by replacing the term “distribution company” with “supplier of last resort,” in line with the post-2018 separation of supply and distribution functions.

The Division maintained that these changes are necessary to ensure regulatory clarity, remove operational bottlenecks, support ongoing power sector reforms, and strengthen the legal framework for a competitive electricity market.

Separately, amendments to the Electricity Act, 1910 (Act No. IX of 1910), aim to align the law with the current administrative and regulatory framework of the power sector.

The Power Division explained that certain provisions of the Act have led to procedural inefficiencies and delays in decision-making. The proposed amendments seek to rationalise and reassign powers currently vested in the federal government to appropriate authorities, particularly in matters related to resolving disputes over the laying of electric supply lines and the designation of officers for official correspondence.

This reassignment, the Division said, would help clarify roles, expedite administrative processes, and reduce unnecessary reliance on higher executive forums for routine operational matters.

The amendments are therefore intended to streamline governance, improve efficiency, and ensure that routine and technical matters are handled at the appropriate level, allowing the government to focus on broader policy and strategic issues.

When the amendments were presented, Raja Qamarul Islam, MNA, remarked that they were procedural in nature and did not require discussion. The Committee agreed and approved both bills without debate.

Copyright Business Recorder, 2026