Senate passes bill to strengthen regulatory mechanism of NEPRA

ISLAMABAD: The Senate Friday passed The Regulation of Generation, Transmission and Distribution of Electric Power (amendment) bill, 2011 aimed at strengthening the regulatory mechanism of NEPRA and to regulate power sector.

Federal Minister for Water and Power Syed Naveed Qamar placed the Bill before the House, which was passed.

The bill proposed amendment of section 31, Act XL of 1997 and said that the National Electric Power Regulator Authority (NEPRA) may, on a monthly basis and not later than a period of seven days, make adjustments in the approved tariff on account of, any variations in the fuel charged and, policy guidelines as the federal government may issue and, notify the tariff so adjusted in the official Gazette.

It was also amended that the chairman of the authority shall be an eminent professional of known integrity and competency with at least twenty years of related experience in law, business, engineering, finance, accounting, economics, or the power industry.

According to statement of objects and reasons of the Bill, the ECC directed that: Measures for strengthening the enforcement role of Nepra shall be initiated and comprehensive proposals be submitted by Ministry of Water and Power to the Cabinet for approval.

In compliance with the directions of ECC of the Cabinet, Nepra has carried an exercise to adopt some suitable regulatory measures to strengthen its existing enforcement capacity to regulate power sector. For this purpose, Nepra has proposed five amendments to sections 2, 7, 11, 29 and 38 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 commonly known as Nepra Act, 1997.

Under section 12(e) of the Act, the Authority cannot delegate power to review its orders. To remove ambiguity, explicit power is being proposed. The Authority is assigned to settle the disputes between the licensees under section 11 of the Act. To be expressive and clear understanding of all, the power to settle disputes between licensees is being introduced.

A new sub-section has been suggested after sections 11 and 38 of the Act to give right of appeal before the Authority against the decision of single member of the Authority, any order/decision of the provincial office of inspection or a tribunal constituted under sections 11 and 38. This will provide a legal remedy to the complainant to file appeal before the Authority.

Amount of fine in the existing provision is too low which needs to be reviewed. An amount of rupees one hundred million has now been proposed. In the Pakistan Telecommunication (Re-organisation) Act, 1996 the amount of fine is Rs 350 million. The amount of Rs 300,000 does not create adequate deterrence to the licensee for not repeating the offence.

Meanwhile, the House also passed The Carriage by Air bill, 2011 as passed by the National Assembly.

The bill was proposed to give effect in Pakistan to the conventions concerning international carriage by air known as the Montreal Convention for the Unification of Certain Rules for International Carriage by Air 1999 and consolidated the law.

Earlier, the Chairman Senate Standing Committee of Housing and Works presented the report of the Committee for a period starting from August 7, 2009 to April 9, 2011.

Copyright APP (Associated Press of Pakistan), 2011