AT a time when the rest of the government wears a beleaguered look and is virtually succumbing to policy paralysis, the move to amend the Nepra Act and reallocate some of the powers of the key power-sector regulator seems to be vigorously moving along. The latest amendment that has just been passed in the National Assembly and that awaits the Senate’s approval aims to put the burden to check overbilling of consumers on the regulator’s shoulders, with stiff penalties for the staff of the distribution companies who are found to be involved in the practice. Moreover, the new act also creates an appellate tribunal where Nepra decisions can be appealed, instead of in the high courts that are already overburdened with thousands of cases against the regulator’s decisions. Tariff determinations have been left out of the ambit of the tribunal, giving it the power only to refer a tariff determination back to the regulator with guidelines.

The marked urgency in passing the bill can be seen in the manner in which it was brought before the house through a supplementary agenda with no proper debate, and in the face of opposition protests. The devil is likely in the details, but the avowed aims of the amendment are to be lauded. It seeks to create a competitive electric power market and “to make special provisions for the development of renewable electricity markets” in the country. As such, it recognises a new category of an entity, subject to regulation, called a “market operator” who is responsible for the “organisation and administration of trade in electricity and payments settlements among generators, licensees and consumers”. On the face of it, these are progressive steps. Our power sector has long needed to move towards market-based pricing and exchange of electricity, and if the bill genuinely aims to do this, then the minister for power has a massive job to finish in his remaining few months. The rushed timeline on which the government appears to be moving to ensure passage of the legislation suggests that the real goals are far humbler and aim to accommodate the needs of a few parties who want to challenge Nepra determinations or create regimes of privileged access to the scarce electricity in the system. The Senate should ask for a more thorough debate and seek Nepra’s input on the bill’s provisions before deciding.

Published in Dawn, November 22nd, 2017