Govt seeks approval for revenue-based load shedding nationwide

WEB DESK: The Government is moving to redefine electricity load shedding by amending the Nepra Act and Performance Standards, effectively legalising revenue-based load shedding nationwide.

According to Business Recorder, this change, long desired by the Power Division, aims to address Aggregate Technical and Commercial (AT&C) losses but risks depriving the poorest citizens of their fundamental right to electricity.

The Power Division asserts that Pakistan’s power sector faces significant challenges, particularly the rising circular debt, which threatens the financial stability of both the sector and the economy.

Major contributors to this debt include extensive line losses, poor recovery rates, and widespread electricity theft. In response, Distribution Companies (Discos) implement revenue-based load shedding in areas with high losses.

Additionally, the escalating cost of electricity often makes it impractical to supply power to consumers, necessitating well-structured load shedding as a solution.

To address these issues legally, the government has initiated efforts to amend the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (Nepra Act). The proposed changes aim to create a robust regulatory framework for load shedding based on economic or revenue factors.

A committee, comprising members from various government bodies and independent experts, was established to review the current legal and policy frameworks. After thorough examination, the committee submitted its report on July 31, 2024, recommending specific amendments to the Nepra Act and Performance Standards Rules.

These proposed amendments, which have been endorsed by the Power Division, will now be reviewed by the Cabinet Committee on Legislative Cases (CCLC) before being presented to the Cabinet and subsequently to Parliament for final approval. The Finance Division has also sought input from Nepra and NTDC on these proposed changes.

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