ISLAMABAD: The government has decided to introduce drastic changes in the roles, powers and status of four critical regulatory bodies in the country.

Among other things, the PML-N leadership is looking at creating a new service group — on the pattern of a number of other government services — for regulatory bodies so that appointments to these bodies could be made through the Federal Public Service Commission.

The Oil and Gas Regulatory Authority (Ogra), National Electric Power Regulatory Authority (Nepra), Pakistan Telecommunication Authority (PTA) and Pakistan Electronic Media Regulatory Authority (Pemra) would be the focus of these changes, to be made through amendments to a number of laws, according to a notification seen by Dawn.

Currently, inductions to top posts (such as members and chairmen) of regulatory bodies are generally made by independent panels, as required by the statutory rules governing each regulator. Executive level personnel are appointed by the members and the chairman of the regulatory authority.

According to a notification issued by the Cabinet Division on the directives of the Prime Minister’s Office, a committee led by the Prime Minister’s newly-inducted Special Assistant for Law, Ashtar Ausaf Ali, and additional secretaries from Cabinet Division and the Ministry of Finance has been directed to recommend changes within a month.

The committee will co-opt members of the ministries of water and power, petroleum, information and broadcasting and information technology on special invitation for the specific purpose of discussion on their respective divisions.

The law secretary will also assist the committee on a regular basis.

The committee has been directed to submit its report within 30 days.

Under the terms of reference (TORs), the committee had been asked to review laws establishing Ogra, Nepra, PTA and Pemra to “suggest amendments in order to improve their working, remove confusion and strengthen the relationship between the regulatory bodies and the government”.

The committee is also required to “suggest a mechanism of oversight to ensure continued evaluation and monitoring of the performance of these bodies so that they serve the goals for which they have been set up”.

Roles, powers and status of Ogra, Nepra, Pemra and PTA to be overhauled

The committee will also examine the qualifications, terms and conditions of service of chairpersons and members of the regulatory bodies and bring them in line with the technical and leadership requirements needed for each body.

The committee has also been asked to “examine the desirability of setting up a new service for regulatory bodies through initial appointments made by the FPSC”, the notification said, clarifying that the objective of the committee was to reform the regulators.

Take a look: Govt quietly changes Ogra command

Sources privy to the development said the government had been facing resistance in the implementation of its orders by certain regulatory bodies, particularly Nepra and Ogra, because of their independent status — protected by the Nepra Act of 1997 and the Ogra Ordinance of 2002 and under orders of the Supreme Court, ordering regulators not to implement government directives that were not in line with their statutes.

As a consequence, Nepra had been resisting policy directives of the cabinet’s Economic Coordination Committee (ECC) to include higher system losses, double the debt servicing cost of power sector loans and various other inefficiencies and costs of non-recoveries by the distribution companies in consumer tariff.

The government had to use its sovereign powers to impose various special surcharges such as the equalisation surcharge, which was taken to court on the appeals of various stakeholders.

Likewise, Ogra had also been following a similar route in consumer end gas prices, resulting in non-finalisation of financial results of the gas companies for more than two years.

During the recent petrol crisis, the government was also embarrassed by statements by the Ogra chief before the parliamentary committees that the crisis was caused by indifferent approach of government functionaries and openly denying that law did not allow it to monitor stock position of petroleum products.

As a result, the Ogra chief was sent on forced leave and in his place, the cabinet secretary was given the charge.

Some private members of Pemra have also been openly criticising the government over issues relating to the working of private television channels.

Published in Dawn March 4th , 2015

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