Nepra Declares Revenue-Based Loadshedding Illegal, Power Division Insists Practice Will Continue Amid Rising Circular Debt
Nepra Declares Revenue-Based Loadshedding Illegal, Power Division Insists Practice Will Continue Amid Rising Circular Debt
ISLAMABAD: A sharp institutional disagreement emerged on Tuesday as the National Electric Power Regulatory Authority publicly declared revenue-based load-shedding illegal, while the Power Division Pakistan maintained that the controversial practice would continue due to mounting financial pressures in the power sector.
The issue surfaced during a public hearing on a minor 27-paisa per unit fuel cost adjustment (FCA), where officials disclosed that revenue-based load-shedding is currently being implemented both in Karachi and other parts of the country to manage losses and control the rapidly rising circular debt.
According to officials from the Power Planning and Monitoring Company, including CFO Naveed Qaisar, the total circular debt has surged to approximately Rs1.798 trillion by March 2026, compared to Rs1.161 trillion at the beginning of FY26. He argued that without revenue-based load-shedding, the debt could increase by an additional Rs400 billion.
However, NEPRA member Amina Ahmed strongly objected to the practice, stating that revenue-based load-shedding has already been declared illegal in multiple regulatory decisions. Despite this, representatives of power sector entities confirmed that the policy would continue.
Officials also highlighted challenges in fuel supply, noting fluctuations in gas availability for power generation. They said gas supply to the sector had increased to 140 MMCFD from 80 MMCFD, with expectations of further improvement to around 250 MMCFD following LNG imports.
The Power Division also indicated it is reviewing options to adjust policies related to protected consumer categories, as well as exploring relief measures such as potentially removing the petroleum levy on furnace oil—subject to approval from the International Monetary Fund—to mitigate rising electricity tariffs.
The hearing underscored growing tensions between regulatory authorities and the government over how to balance financial sustainability in the power sector with legal and consumer protection concerns.
