Businessmen warn NEPRA losing autonomy

KARACHI:

Karachi Chamber of Commerce & Industry (KCCI) acting President Muhammad Raza has expressed strong opposition to proposed amendments to the Nepra Act, 1997 and the Electricity Act, 1910, which indicate that the National Electric Power Regulatory Authority may be placed under the administrative control of the Power Division.

Raza stated that the proposed amendments effectively strike at the very foundation of regulatory independence, which is a universally accepted principle for ensuring transparency, predictability and credibility in utility regulation. He cautioned that placing Nepra under the direct influence of an executive ministry would compromise its ability to make impartial, technically sound and cost-reflective decisions, thereby weakening confidence in Pakistan's power sector governance framework.

He pointed out that independent regulators are established precisely to act as neutral arbiters between the government, utilities, investors and consumers. Any move that transforms Nepra into a subordinate body of the Power Division would not only undermine its authority but also raise concerns about the politicisation of tariff determinations and regulatory decisions.