Provinces are unlikely to be allowed to establish independent electricity regulatory bodies in the presence of such a body at the federal level, well informed sources in the Ministry of Water and Power told Business Recorder.
An inter ministerial committee under the chairmanship of Minister for Water and Power, constituted by the Council of Common Interest (CCI), is of the considered view that the mandate of determination of tariff for distribution of electricity given to National Electric Power Regulatory Authority(Nepra) " pima facie" cannot not be said to be in conflict with the provision of the Constitution of Pakistan and any of the aggrieved government can invoke CCI for interpretation/ dispute resolution in the light of article 154(3).
The committee held three meetings on 7th, 28th of September 2010 and 14th January 2011 and representatives from all the provinces, Ministry of Water and Power, Ministry of Law and Nepra attended the meetings. The committee reviewed the Constitution of Pakistan, Nepra Act 1997, Wapda Act 1958, Gadoon Amazai case (Supreme Court of Pakistan), Rulings by Nepra, Distribution Licenses granted by Nepra and Writ Petition filed by GoKP in Peshawar High Court.
After detailed deliberations on the issue, committee members observed that subject of electricity and all the regulatory authorities established under the federal law are included in Part II of the Federal Legislative List Pursuant to Article 157(1) of the Constitution the federal government is empowered to construct or cause to be constructed hydroelectric or thermal power installations or grid stations for the generation of electricity or lay or cause to be laid inter provincial transmission lines in any of the provinces.
Pursuant to Article 157(2) of the Constitution of Pakistan as interpreted by the Supreme Court of Pakistan a province can determine the tariff for distribution of electricity if it purchases the electricity in bulk from the national grid or it constructs power houses and grid stations and has laid transmission lines for use within the province. As per the judgement of the Supreme Court the use of word "may" is employed as an enabling provision. There is no constitutional obligation to carry out works or to take action mentioned in the said article.
The government of a province can determine the tariff for distribution of electricity within the province under sub clause (d) only when it purchases electricity in bulk from the national grid under sub clause (a) for distribution within the province or when it constructs power houses and grid stations and lays transmission lines for use within the province under sub clause (c).
Section 7(4) of the Nepra Act safeguards the right of the province to construct power houses and grid stations and lay transmission lines for use within the province and determine the tariff for distribution of electricity within the province.