Zahid Hamid of PML-N presented amendments in clause three and five of the Bill which were adopted without opposition. According to the amendments, in section 31, in sub-section (4) for the second proviso of the Bill, the following shall be substituted, namely:
"Provided further that Authority shall, on a monthly basis and not later than a period of seven days, make adjustments in the approved tariff on account of, any variations in the fuel charges and, policy guidelines as the Federal Government may issue and notify the tariff so adjusted in the official Gazette."
In clause three of the Bill, the words "or the power industry" shall be substituted and in sub-section (4) of the Act, for the words "electric utility", occurring in the third line, the word "power" shall be substituted. According to statement of objects and reasons of the Bill, the ECC directed that: Measures for strengthening the enforcement role of Nepra shall be initiated and comprehensive proposals be submitted by Ministry of Water and Power to the Cabinet for approval.
In compliance with the directions of ECC of the Cabinet, Nepra has carried an exercise to adopt some suitable regulatory measures to strengthen its existing enforcement capacity to regulate power sector. For this purpose, Nepra has proposed five amendments to sections 2, 7, 11, 29 and 38 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 commonly known as Nepra Act, 1997.
Under section 12(e) of the Act, the Authority cannot delegate power to review its orders. To remove ambiguity, explicit power is being proposed. The Authority is assigned to settle the disputes between the licensees under section 11 of the Act. To be expressive and clear understanding of all, the power to settle disputes between licensees is being introduced.
A new sub-section has been suggested after sections 11 and 38 of the Act to give right of appeal before the Authority against the decision of single member of the Authority, any order/decision of the provincial office of inspection or a tribunal constituted under sections 11 and 38. This will provide a legal remedy to the complainant to file appeal before the Authority.
Amount of fine in the existing provision is too low which needs to be reviewed. An amount of rupees one hundred million has now been proposed. In the Pakistan Telecommunication (Re-organisation) Act, 1996 the amount of fine is Rs 350 million. The amount of Rs 300,000 does not create adequate deterrence to the licensee for not repeating the offence.
According to the Bill, Amendment of section 3, Act XL of 1997, in the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997), in section 3, for sub-section (3), the following shall be substituted, namely:
"(3) The Chairman shall be an eminent professional of known integrity and competence with at least twenty years of related experience in law, business, engineering, finance, accounting, economics, the electric utility business, public administration or management." Insertion of section 11-A, Act XL of 1997.- In the said Act, after section 11, the following new section shall be inserted, namely:
Appeal: Any person aggrieved by any decision or order of single Member of the Authority or, as the case may be, Tribunal established under section 11 may, within thirty days of the decision or order, prefer appeal to the Authority in the prescribed manner and the Authority shall decide such appeal within sixty days."
Amendment of section 29, Act XL of 1997: In the said Act, in section 29: (a)for the words "three hundred thousand" the words "one hundred million" shall be substituted; and (b)for the words "a higher penalty as may be prescribed" the words "a fine which may extend to five hundred thousand rupees per day" shall be substituted.
Amendment of section 38, Act XL of 1997 - In the said Act, in section 38, after subsection (2), the following new sub-section shall be added, namely: "(3) Any person aggrieved by any decision or order of the Provincial Office of Inspection may, within thirty days of the receipt of the order, prefer appeal to the Authority in the prescribed manner and the Authority shall decide such appeal within sixty days."