Islamabad, 27-Jan-2026 (PPI): A prominent business leader has warned that proposed legal amendments placing the National Electric Power Regulatory Authority (Nepra) under direct ministry control threaten to sabotage the privatisation of power distribution companies (Discos) and severely harm consumer interests.
Shahid Rasheed Butt, a former president of the Islamabad Chamber of Commerce, stated that attempts by the Power Division to curtail the regulator's autonomy would undermine public rights and discourage potential investors.
In a statement issued here, he argued that ending the regulator’s independence would strengthen the position of Independent Power Producers, which he claimed have already inflicted losses of trillions of rupees on the economy.
Mr Butt identified proposed changes to the Nepra Act 1997 and the Electricity Act 1910 as the measures that would place the authority directly under the control of the Power Division. He added that international financial institutions and the private sector have also expressed concerns over these amendments.
He pointed to the sector's existing issues, noting that poor performance by distribution companies led to a circular debt increase of approximately Rs. 397 billion during the 2024-2025 fiscal year. He also highlighted that average transmission and distribution losses stood at 17.55 percent, far exceeding the allowed limit of 11.43 percent.
The business leader described Nepra as an already weak body, asserting that the proposed changes would render it dysfunctional.
A compromised regulator, he warned, would delay tariff notifications, stall the development of a competitive electricity market, and undermine key reforms, ultimately failing to ensure consumer protection or stability in the power sector.
He urged parliament to review the proposed legal changes transparently and to consult all stakeholders. Mr Butt cautioned that any move compromising regulatory independence would deepen inefficiencies, raise electricity costs for households and businesses, and further erode confidence in the power sector reform agenda.