ISLAMABAD: The Ministry of Finance (MoF) has expressed reservations over the Power Division’s proposal to legalise revenue-based load shedding, arguing that the plan lacks sufficient data to justify its economic benefits, according to sources cited by Business Recorder.
Currently, power Distribution Companies (Discos) and K-Electric (KE) enforce economic load shedding as per the Power Division’s policy, which lacks legal backing from the National Electric Power Regulatory Authority (Nepra). Nepra’s Chairman, Ch Waseem Mukhtar, recently declared revenue-based load shedding illegal, suggesting the government should either cease the practice or amend the legal framework.
In response, the Power Division has begun preparing a proposal to introduce legal amendments for revenue-based load shedding. The division argues that this practice is necessary in areas with high line losses and during periods when electricity costs are prohibitively high.
The Finance Ministry, however, raised concerns, noting that while load shedding in high-loss areas may be justifiable, it does not address the issue of capacity payments for unused electricity, which continue to burden consumers. The ministry urged the Power Division to provide detailed justification before presenting the proposal to the Cabinet.
Story by Mushtaq Ghumman
