Nepra seeks repeal of five power rules in Pakistan

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Nepra seeks power rule repeal

Highlights

Nepra formally requested the federal government to repeal five superseded power rules to resolve duplication and regulatory uncertainty per the amended 1997 Act.
The proposed repeal targets the Fees Rules 2002, Fines Rules 2002, Uniform System of Accounts Rules 2009, Licensing (Distribution) Rules 1999, and Performance Standards (Distribution) Rules 2005, citing replacement by 2021, 2022, and 2026 regulations.
The Cabinet Division assigned the repeal proposal to the Power Division for review and preparation, with no final federal decision made yet, affecting licensing, billing, and operational standards.

Regulatory overhaul and repeal request

As reported by Pakistan Business Recorder, the National Electric Power Regulatory Authority has asked the federal government to repeal five existing rules that it says have been superseded by newer regulations issued under the amended power sector law. Nepra argues that keeping both sets in force at the same time creates duplication, increases the risk of conflicting interpretations and leaves uncertainty over which requirements apply.

In a letter to the Cabinet Division, the regulator says the rules should be withdrawn under the framework set by the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, as amended in 2018. Nepra cites Section 50(2) of the law, which requires rules and regulations to be brought into conformity with the amended provisions where needed within one year of the amendment's commencement.

The proposed repeal covers the Nepra (Fees) Rules, 2002; Nepra (Fines) Rules, 2002; Nepra (Uniform System of Accounts) Rules, 2009; Nepra Licensing (Distribution) Rules, 1999; and the Nepra Performance Standards (Distribution) Rules, 2005. The regulator says these have been replaced by corresponding regulations notified in 2021, 2022 and 2026, including the Performance Standards (Distribution) Regulations, 2026, which it wants prioritized for repeal action.

Nepra also refers to Section 45(1) of the Act, under which the federal government has the authority to make rules on its own initiative or on the regulator's recommendation. On that basis, it says the power to repeal the older rules also rests with the federal government and has asked for the process to be completed at the earliest.

Cabinet process and sector implications

The Cabinet Division has assigned the matter to the Power Division for further action, with the division expected to review the proposal, hold the required consultations and prepare it for consideration by the Federal Cabinet. No final decision on the repeal has been made so far, according to sources cited in the report.

The request follows a series of exchanges between Nepra and the federal government dating back to 2020 on changes needed to align older rules with the amended electricity law. In its September 17 letter, the regulator reiterates that the continued existence of superseded rules could complicate interpretation and enforcement across areas including fees, fines, accounting requirements, distribution licensing and performance standards.

For Pakistan's power sector, the proposed cleanup is designed to create a more consistent compliance framework for companies involved in generation, transmission and distribution. Removing overlapping legal instruments could reduce regulatory ambiguity for utilities and support a clearer basis for licensing, billing oversight and operational standards.

Our earlier article on Britain’s energy-cost debate examined why electricity bills and grid expenses remain elevated as the country tries to decarbonise and reduce exposure to gas-price shocks. We outlined competing proposals—from a more mutualised, state-involved model to critiques of the system costs of integrating renewables—and noted that recent crisis-driven support underscored the urgency of market and infrastructure reform.

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