Generation, transmission & distribution: Power regulator urges govt to repeal five existing rules

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has urged the federal government to repeal five existing rules, including the Performance Standards (Distribution) Rules, 2005, warning that their continued existence alongside corresponding regulations notified by the regulator could create legal uncertainty and lead to divergent interpretations.

In a letter to the Cabinet Division, NEPRA requested the federal government to take appropriate action to repeal the rules that have been superseded by regulations notified under the amended legal framework governing the generation, transmission and distribution of electric power.

The proposed repeal covers the NEPRA Performance Standards (Distribution) Rules, 2005; NEPRA (Fees) Rules, 2002; NEPRA (Fines) Rules, 2002; NEPRA (Uniform System of Accounts) Rules, 2009; and NEPRA Licensing (Distribution) Rules, 1999.

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NEPRA particularly requested that the repeal of the Performance Standards (Distribution) Rules, 2005, be accorded priority following the notification of the NEPRA Performance Standards (Distribution) Regulations, 2026.

According to the regulator, the existing rules and the corresponding regulations now cover the same subject matter, creating duplication in the legal framework. Their simultaneous existence could result in conflicting interpretations and uncertainty regarding the applicable regulatory requirements.

The issue arises from amendments to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, introduced through the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act, 2018.

NEPRA explained that Section 50(2) of the principal Act requires rules and regulations to be brought into conformity with the amended provisions of the law, wherever necessary, within one year of the commencement of the 2018 Amendment Act.

The regulator maintained that, following the notification of new regulations on subjects previously governed by rules, the corresponding old rules should be repealed to ensure consistency in the regulatory framework.

The first set comprises the NEPRA (Fees) Rules, 2002, notified through S.R.O. 52(I)/2002 on January 19, 2002. These are proposed to be replaced by the NEPRA (Fees) Regulations, 2021, notified through S.R.O. 660(I)/2021 on May 31, 2021.

The second set comprises the NEPRA (Fines) Rules, 2002, notified through S.R.O. 53(I)/2002 on January 19, 2002. NEPRA sought their repeal following the notification of the NEPRA (Fines) Regulations, 2021, through S.R.O. 1463(I)/2021 dated November 12, 2021.

The third set comprises the NEPRA (Uniform System of Accounts) Rules, 2009, notified through S.R.O. 1158(I)/2009 on August 25, 2009. These have been superseded by the NEPRA (Uniform System of Accounts) Regulations, 2022, notified through S.R.O. 611(I)/2022 on May 13, 2022.

The fourth set comprises the NEPRA Licensing (Distribution) Rules, 1999, notified through S.R.O. 476(I)/99 on April 16, 1999. The regulator has requested their repeal following the notification of the NEPRA Licensing (Distribution) Regulations, 2022, through S.R.O. 445(I)/2022 dated March 28, 2022.

The fifth set comprises the NEPRA Performance Standards (Distribution) Rules, 2005, which NEPRA says have been superseded by the NEPRA Performance Standards (Distribution) Regulations, 2026, notified through S.R.O. 1430(I)/2026 dated September 18, 2026.

NEPRA has specifically asked the federal government to give priority to the repeal of the 2005 Performance Standards (Distribution) Rules in view of the notification of the 2026 regulations.

The regulator has referred to Section 45(1) of the Act, as substituted by the 2018 Amendment Act, which empowers the federal government to make rules either on its own initiative or on the recommendation of NEPRA.

According to the authority, the power to repeal such rules also rests with the federal government. It has therefore requested the government to complete the necessary process for withdrawing the superseded rules at the earliest.

The Cabinet Division has assigned the matter to the Power Division for further action. The division is required to examine the proposal, undertake the requisite consultations and process it for consideration by the Federal Cabinet.

The request follows a series of communications between NEPRA and the federal government dating back to 2020, covering the legal and regulatory changes needed to align the existing rules with the amended electricity law.

NEPRA’s September 17 letter referred to its earlier correspondence on the matter and reiterated that the continued existence of superseded rules could complicate the interpretation and application of the regulatory framework.

The proposed exercise is intended to remove duplication between the old rules and the newer regulations governing fees, fines, accounting requirements, distribution licensing and performance standards.

According to sources, no final decision on the repeal of the rules has been made so far. The matter has been referred to the Power Division for examination and processing before the Federal Cabinet.

Copyright Business Recorder, 2026