NEPRA rejects proposed amendments for ‘economic load shedding’
The National Electric Power Regulatory Authority (Nepra) has reportedly turned down proposed amendments aimed at implementing economic load management in Pakistan, citing concerns that these changes contradict existing laws and may harm consumer interests, according to informed sources speaking to Business Recorder.
The Power Division had submitted a summary requesting two key changes to the Nepra Act:
- Definition of Load Shedding: The introduction of a definition for “load shedding” in Section 2 of the Regulation of Generation, Transmission and Distribution of Electric Power Act (Nepra Act) XL of 1997, which would classify it as a process of removing consumers’ load from the power system for technical, commercial, or economic reasons, with prior notification.
- Policy Guidelines for Load Shedding: A modification to Section 34, allowing the federal government to issue binding policy guidelines for load shedding based on economic constraints, while ensuring principles of equality and non-discrimination among consumer classes.
Nepra has consistently opposed load shedding, asserting that the country possesses adequate generation capacity to meet demand. The National Electricity Policy 2021 aims for the gradual elimination of load shedding for paying consumers, including those in rural areas.
The Supreme Court has also expressed concern over load shedding, emphasizing that access to electricity is a fundamental right under Article 9 of the 1973 Constitution.
In its comments, Nepra highlighted Section 23 F (2) (b) of the Act, which mandates electric power suppliers to provide service to all eligible consumers without discrimination, barring specific exceptions. The authority warned that the proposed definitions and amendments might provoke public backlash and should be subject to parliamentary debate.
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The International Monetary Fund (IMF) has stated its support for energy sector reforms to enhance efficiency, relieve price pressures, and ensure sustainability. Key reform areas include improving distribution efficiencies through private sector involvement, combating electricity theft, enhancing the transmission framework, privatizing inefficient generation companies, and transitioning to a competitive electricity market to reduce capacity payments, which currently constitute about 60% of generation costs.
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