NEPRA Reassesses Past 20 Decisions on Electricity Tariff Adjustments

Islamabad: The National Electric Power Regulatory Authority (NEPRA) is re-evaluating 20 of its previous decisions on electricity pricing following an order from the Appellate Tribunal. The review encompasses 15 monthly decisions from 2021, 2022, and 2023, as well as five quarterly adjustments over the same period.
The Tribunal’s directive mandates NEPRA to conduct new hearings on these decisions. The appeal contends that NEPRA violated merit order principles and improperly applied Fuel Cost Adjustments (FCA). The Tribunal has criticized NEPRA for not ensuring regulatory transparency and effectiveness, and has ordered a third-party audit of the Central Power Purchasing Agency (CPPA) and the National Power Construction Corporation (NPCC). The Tribunal emphasized that the burden of inefficiency should not fall on consumers.
The appellant also highlighted that three RLNG power plants had an efficiency rate of 61%, suggesting that over 3.3 billion rupees could have been saved for the public. The Tribunal’s decision has not been challenged, but it criticized NEPRA for not conducting meaningful hearings, resulting in additional financial strain on consumers. It called for the establishment of a mechanism to ensure consumer protection.
NEPRA Chairman stated that the authority is actively working to address these issues.