ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has reportedly rejected proposed amendments in legal framework to implement economic load management in the country, saying that the intended alteration in legal framework is contrary to law and against the interests of the consumers, well informed sources told Business Recorder.
Power Division, in its summary sought following changes in legal framework in the Nepra Act:
(i) insertion of the following definition in section 2 clause of Regulation of Generation, Transmission and Distribution of Electric Power Act (Nepra Act) XL of 1997 as amended “load shedding” means the process of removing, either manually or automatically, the consumers’ load from the power system under intimation/ publication in advance, planned due to technical, commercial, and/ or economic considerations as approved by authority from time to time;
(ii) the following may be substituted in sub-section ’V of Section 34. of Regulation of Generation, Transmission and Distribution of Electric Power Act (Nepra Act) XL of 1997 as follows (v) principles and priorities of load shedding provided; however, where load shedding is necessitated due to economic constraints, the federal government may from time to time issue policy guidelines which shall he binding on the Authority and licencee(s) provided further that in the formulation of such policy guidelines, the federal government shall be guided by the principles of equality and non-discrimination among the various classes of consumers.“
The Authority has always discouraged load shedding in the country maintaining that there is sufficient installed generation capacity to meet demand. Further, the National Electricity Policy 2021 provided for progressive elimination of load shedding in all areas including rural areas for consumers who pay their electricity bills, in accordance with the legal framework.
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The Supreme Court also took serious note of load shedding and in their several pronouncements discouraged power outages and declared ‘electricity’ as right to life guaranteed under Article 9 of the Constitution of 1973.
The sources said, Nepra, in comments further stated that section 23 F (2) b) of the Act provides that the electric power suppliers shall be responsible to make sale of electric power within its territory on a non-discriminate basis to all the consumers who meet the eligible criteria laid down by the Authority. This provision creates an obligation to supply to all eligible consumers. The only exception to this obligation is in case the consumer has contracted with another electric power supplier or there is default in payment of electricity charges or involvement in illegal abstraction of electricity. Therefore, the proposal is contrary to section 23 F (2) (b) of the Act.
The power sector Regulator further stated that the proposed definition of load shedding including commercial/ economic load shedding may draw public anger, proposing the proposed amendments need to be debated in Parliament.
International Monetary Fund (IMF) argues that it is supportive of energy sector reforms to reduce inefficiencies, ease price pressures, and restore viability and sustainability.
Key reforms to reduce costs and CD should focus on improving distribution efficiencies, most notably by accelerating steps to improve distribution company management via private sector participation (end-January 2025 structural benchmark ), institutionalise anti-theft procedures to reduce losses, improve the policy and regulatory framework of the transmission system which has been a key bottleneck, privatise inefficient generation companies, improve power plant efficiencies, complete the transition to a competitive electricity market and reduce capacity payments by renegotiating power purchase arrangements (which account for approximately 60 percent of generation costs).
Copyright Business Recorder, 2024
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