Islamabad: Energy Ministry Raises Concerns Over NEPRA’s Decisions, Warns of Impact on Reforms and Tariffs

Islamabad:The **Ministry of Energy** has expressed serious reservations over recent decisions made by the **National Electric Power Regulatory Authority (NEPRA)**, stating that these could **undermine ongoing energy sector reforms** and **impact federal subsidies and tariff structures**.

Federal Minister for Energy **Awais Leghari** said the ministry is deeply concerned about NEPRA’s recent moves, which, according to him, are increasing **financial pressure** on the energy sector and could potentially **discourage private investment**.

> “Several decisions made by NEPRA directly affect federal subsidy allocations and consumer tariffs. The Ministry retains the right to review such tariff-related rulings,” said Leghari.

He pointed out that decisions such as the **pending generation tariff case since December 2024** remain unresolved and called for a **comprehensive review of NEPRA’s policies** related to **transmission, distribution, and power supply**.

The energy minister further warned that if reforms are delayed due to NEPRA’s unilateral decisions, the result could be **reduced investor confidence** and a **heavier financial burden on consumers**.

> “NEPRA’s approach to tariff setting could negatively impact both consumers and private investment. There is a real risk of increased financial pressure on end-users,” he stated.

The ministry’s statement signals a growing **tension between the federal government and the power regulator**, at a time when Pakistan’s energy sector is struggling with **circular debt, inefficiencies, and a critical need for foreign investment**.

Awais Leghari emphasized the need for **greater alignment between regulatory bodies and the government’s reform agenda** to ensure a sustainable and investor-friendly power sector.