From Our Correspondent
MULTAN: The measures mulled to rationalise targeted subsidies, address multi-billion-rupee capacity obligations, and safeguard long-term investment response to the rapid proliferation of rooftop solar installations and sharp shifts in national electricity consumption patterns, the federal government has initiated comprehensive moves to strengthen the National Electric Power Regulatory Authority (NEPRA) and overhaul the country’s power market framework.
Chairing the second meeting of the Steering Committee on Power Sector Regulatory Regime at the Finance Division, Federal Minister for Finance and Revenue Muhammad Aurangzeb reviewed an array of structural reforms aimed at enhancing system efficiency, attracting fresh capital, and fostering private sector competition. The committee acknowledged that accelerating solar adoption has fundamentally altered grid demand, creating acute fiscal challenges around existing capacity payment obligations to power producers.
Aurangzeb emphasised that the regulatory regime must evolve alongside technological advancements while safeguarding consumer interests and promoting financial viability.
Key reform pathways discussed during the meeting include:
Unbundling Network and Supply Functions: The committee deliberated on separating electricity network operations from retail supply. Under the proposed model, Distribution Companies (DISCOs) will solely function as distribution network operators tasked with grid maintenance, while independent, licensed commercial suppliers will compete to sell electricity directly to consumers.
Tackling Capacity Burdens: Participants explored frameworks to address capacity liabilities, improve regulatory predictability, and accommodate fluctuating baseload demand without overburdening captive consumers.
Targeting Subsidies: The forum underscored the necessity of rationalising existing power subsidies to direct fiscal support strictly toward vulnerable segments, phasing out across-the-board cushions for affluent grid-defection segments.
The finance minister directed authorities to expedite the formulation of a transparent market structure that incentivises service quality, introduces genuine retail competition, and expands the footprint of private investment across the power value chain.
