Government Poised to Redefine Load-Shedding Amid Revenue-Based Concerns

load-shedding

ISLAMABAD: The government is preparing to redefine electricity load-shedding by amending the Nepra Act and Performance Standards, aiming to legalize revenue-based load-shedding across the country under the guise of Aggregate Technical and Commercial (AT&C) losses. This move, long sought by the Power Division, risks depriving the poorest citizens of their fundamental right to electricity.

The Power Division has cited increasing circular debt, massive line losses, low recovery rates, and electricity theft as key factors contributing to the sector’s financial instability. Revenue-based load-shedding is already implemented in areas with high line losses, and with rising power prices, it is becoming economically unfeasible to supply electricity to these regions.

In response to these challenges, the Prime Minister chaired multiple meetings in April 2024, directing the Power Division to review and propose necessary amendments to the existing legal and policy frameworks. A committee, comprising members from various energy and legal bodies, has submitted a report recommending changes to the Nepra Act and Performance Standards Rules. These proposed amendments are now awaiting review by the Cabinet Committee on Legislative Cases (CCLC) before being presented to Parliament for final approval.

The Finance Division has also requested that the Power Division seek input from Nepra and the National Transmission and Despatch Company (NTDC) on the proposed amendments.

Story by Mushtaq Ghumman

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