ISLAMABAD: The caretaker government of Khyber Pakhtunkhwa (KP) has raised objections on amendments in Nepra Act 1997 titled (Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance, 2023, saying it was taken without due process.
In this regard caretaker Chief Minister KP Muhammad Azam Khan in a letter to Federal Government said that all important decisions pertaining to Nepra Act need to be taken with concurrence of the Council of Common Interests (CCI).
Shehbaz Sharif government in its dying days took several decisions which are now being challenged in different courts.
Nepra Act: Govt readies amendments to catapult its ‘own man’ to top slot
Though caretaker Chief Minister KP wrote the letter on August 2, 2023, Prime Minister’s Officer on-sent it to Secretary Cabinet on August 16, 2023, two days after the caretaker Prime Minister took over charge of office. Meanwhile, the newly appointed Chairman Nepra had also taken the charge.
According to caretaker Chief Minister, decisions of such significant importance, relating to Nepra should not be taken without the concurrence of the Council of Common Interests.
He submitted following comments on Nepra Act 1997: (i) Regulatory authorities, including Nepra, fall under Part 2 of the 4th schedule of the constitution, and consequently any policy changes should be made through the CCI. It would not be advisable to bypass the CCI and provincial governments while making such crucial decisions; and (ii) this decision through the proposed Ordinance is likely to compromise the independence of the Regulator and in its turn the fundamental status of the independent regulatory arrangement under which it acts outside the purview of the government.
“I would suggest that the federal government should avoid appointing a serving government officer; it would be difficult for him to remain independent. Consequently, the appointment of a serving civil servant as Member of the Authority is not supported,” he said adding that amendment in section 7(1) of the Act would make Nepra subservient to the decisions of the Economic Coordination Committee (ECC) representing the federal government. Secondly the ECC has no provincial representation.
According to caretaker Chief Minister the proposed move will run counter to the spirit of cooperative federalism anchored in the institution of the CCI as stipulated in the constitution which mandates policymaking relating to electricity within the domain of the CCI. On the contrary the amendment seeks to encroach upon CCIs mandate with the federal government alone taking a policy decision; there is. Therefore, a need to clarify it and/ or seek changes therein.
“I would like to reiterate my concerns regarding the changes proposed through the Ordinance, particularly the sections undermining the independence of the regulator. I am of the firm belief that all important decisions like these need to be taken with concurrence of the CCI,” he wrote.
He has urged the need for transparent and consultative decision-making to ensure protection of the best interests of consumers, investors, and all stakeholders in the power sector.
Copyright Business Recorder, 2023