Power regulation law: Proposed amendments approved by ECC

07 Jan, 2020

A meeting of the ECC chaired by Advisor to Prime Minister on Finance Dr Abdul Hafeez Shaikh gave approval to the amendment as proposed by the Ministry of Energy and recommended that the Regulation of Generation, Transmission and Distribution of Electronic Power Act, 1997 should be submitted to the federal cabinet.

The government has agreed under Extended Fund Facility (EFF) of the IMF to streamlining tariff procedures and reintroducing surcharges, the National Electric Power Regulatory Authority (NEPRA) Act will be amended to: (i) give the regulator the power to determine and notify quarterly tariffs; (ii) ensure timely submission of tariff petitions by the DISCOs; (iii) streamline the notification of annual tariffs by the government and; (iv) reintroduce the power of the government to introduce tariff surcharges to stem the accumulation of arrears. Amendments to the Nepra Act are expected to be submitted to the Parliament.

The meeting was informed that amendments are aimed at bringing more clarity and precision in the market operation, uniform tariff, timely submissions and determination of quarterly and annual tariffs.

The ECC discussed the proposed draft amendments in detail and recommended their submission to the cabinet with a slight modification in the text to make it more clear after taking input from some members of the ECC.

After the ECC's go-ahead, the proposed amendments would be taken up by the federal cabinet and later submitted to the National Assembly Secretariat for further discussion by the NA Standing Committee and other relevant stakeholders, including Nepra, before being put to vote by the House.

Sources said that the ECC meeting was convened to consider five-point agenda items; however, it considered and approved the Regulation of Generation, Transmission and Distribution Act 1997.

Copyright Business Recorder, 2020

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