Minister, CMs to ponder over changes in Nepra Act today

ISLAMABAD: The chief executives of four federating units will meet Federal Minister for Water and Power Khawaja Asif today (Friday) to give their input to develop a consensus document for amendments in National Electric Power Regulatory Authority (Nepra) Act, a senior official told The News.

“Apart from it, the chief ministers of four federating units will also give their input to fine tune the document of the country’s first ever national water policy based on guidelines for the provinces. The consensus document for water policy will also be pitched in the next meeting of Council of Common Interests (CCI) for final approval,” said the official, adding, “The document of the national water policy took 11 years to take final shape as the exercise to make the water policy had started in 2005.” 

Water is no more a federal subject, the official said, but the federal government has made the national water policy based on guidelines as it is the provinces which are needed to make their own water policies for implementation level and to this effect the Punjab government has carved out its policy that has been submitted with the provincial cabinet for approval. In the national water policy, all vital issues starting from trans-boundary ground water issues, regulation of pumping of water from ground, climate change and to pricing mechanism have been figured out. As per the proposed water policy, national water commission has been proposed.

Coming to changes in Nepra Act, the official said that earlier, Sindh and KP in last CCI meeting had opposed the proposed amendments in Nepra and in that particular meeting it was decided to assign the Ministry of Water and Power to come up with consensus document after getting inputs from all stakeholders including provincial governments of Sindh and KP.

The federal government wants to bring some futuristic amendments in the Nepra Act with an aim to make Nepra the market-based regulator as it is currently based in on buyer model, but now the country’s power sector is shifting towards the multi-buyer model.

According to Secretary Water and Power Younis Dagha, the world is moving away to a modern regulatory regime encouraging market competition and ensuring best prices and services for the consumers, but the country is given a regulatory framework focused on unrealistic tariff setting and excessive controls.

“We have shared the document pertaining to Nepra Act with the provincial governments and now for more detailed deliberations, Minister for Water and Power Kh Asif has convened the meeting of chief ministers of the four provinces here on February 10,” Dagha said.

Now the government wants Nepra to come up with more transparency, accountability and there should be vivid classification between definitions of policy and regulation. The policy making is the sole domain of the government whereas Nepra is supposed to regulate the whole power sector. In addition, the government wants to introduce certain qualifications for the selection of members of Nepra and the provinces will also be asked to nominate their candidates for Nepra members keeping in view certain qualification.

“We are in the process of fine tuning the changes to be introduced in the Nepra act as in the last CCI meeting it was decided that after getting the inputs of provincial governments on this particular issue, the ministry is supposed to come in the next meeting with the consensus documents with regard to amendments in the Nepra Act.”

According to the government, Nepra has allegedly inflicted colossal loss of over 1 trillion to the power sector since 2006-07 which appeared in the form of circular debt burdening the national exchequer and electricity end consumers. 

The power regulator has been setting since 2006-07 the tariff based on unrealistic target of 100 percent recovery in a country which is beset with law enforcement challenges and unverified line losses in the Discos. The unrealistic tariffs set by the regulator have resulted in massive surge in circular debt since 2007 up to Rs1,073 billion which had been paid by the national exchequer and by the end consumers of electricity, Younis Dagha said.