Islamabad (Jan-27-2026) Business leader and former president of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, has said that attempts by the Power Division to control Nepra pose a threat to the protection of public rights and to the privatisation of the power sector.
He said that ending the regulator’s autonomy would sabotage the proposed privatisation of electricity distribution companies, discourage investors, and cause serious harm to consumer interests while further strengthening the interests of Independent Power Producers that have inflicted losses of trillions of rupees on the economy.
In a statement issued here, Shahid Rasheed Butt said that proposed amendments to the Nepra Act 1997 and the Electricity Act 1910 would place Nepra directly under the control of the Power Division. He added that international financial institutions and the private sector have also expressed concerns over these amendments.
He said that during fiscal year 2024 to 2025, poor performance by distribution companies led to an increase of about Rs. 397 billion in circular debt. Average transmission and distribution losses stood at 17.55 percent, far above the allowed limit of 11.43 percent.
Shahid Rasheed Butt said that Nepra is already weak and unable to stand up to government arbitrariness, and is now being further weakened and rendered dysfunctional.
A compromised regulator will delay tariff notifications, stall the development of a competitive electricity market, and undermine key reforms. A weak regulator, he said, will be unable to ensure consumer protection or stability in the power sector.
He urged parliament to review the proposed legal changes transparently and consult all stakeholders, including consumers and potential investors. Any move that compromises regulatory independence, he warned, would deepen inefficiencies, raise electricity costs for households and businesses, and further erode confidence in the power sector reform agenda.
