The Cabinet Division, sources said, has proposed four amendments in the administrative provisions Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 which are being considered by an inter-ministerial committee. Presently, Nepra members are appointed on the recommendations of the provincial governments under section 3 of the Nepra Act.
However, Cabinet Division has proposed that instead of seeking nominations from the provinces, members should be appointed by the federal government against specialized posts of member (tariff and finance), member (technical), member (law) and member (administration/ enforcement). This will ensure that professional candidates with background knowledge and expertise are appointed in the Authority.
In other regulatory Authorities like Oil and Gas Regulatory Authority (OGRA) and Pakistan Telecommunication Authority (PTA) appointments of members are against subject posts instead of seeking nominations from provinces.
Commenting on experience, Cabinet Division argued that section 3(3) and 3(4) of the Nepra Act stipulates that an experience of not less than 12 years is required to be appointed as Chairman and Members of the Authority. Before amendment in Nepra Act in 2018, an experience of not less than 20 years was required for the Chairman of the Authority and for Members an experience of not less than 15 years was stipulated.
Nepra has proposed that the original provisions of the Nepra Act before amendment in 2018 may be revived.
According to the Cabinet Division section 3(5) of Nepra Act stipulates that the age of superannuation of Chairman and Members is 60 years. Before the Act was amended in 2018, this age was 65 years. Cabinet Division has proposed that the original provision may be revived.
The sources further stated that section 8(1) of the Nepra Act stipulates that remuneration and allowances of Chairman and Members of the Authority will be determined by the Authority with the approval of the federal government.
Cabinet Division has proposed that this provision may be modified to the extent that the remuneration and allowances may be determined by the federal government on the recommendations of the Authority, as was the case before the amendment in 2018.
Nepra's main responsibilities are to: (i) issue licences for generation, transmission and distribution of electric power; (ii) establish and enforce standards to ensure quality and safety of operation and supply of electric power to consumers; (iii) approve investment and power acquisition programs of the utility companies; and (iv) determine tariffs for generation, transmission and distribution of electric power.
Nepra is regulating the electric power sector to promote a competitive structure for industry and to ensure coordinated, reliable and adequate supply of electric power in the future. By law, Nepra is mandated to ensure that the interests of the investor and the customer are protected through judicious decisions based on transparent commercial principles and that the sector moves towards a competitive environment.
A primary challenge is to quickly create a track record of Nepra's working such that it demonstrates its objectivity and impartiality. Nepra has to demonstrate that its decisions are neither arbitrary nor influenced by individual and personal discretion. It is accordingly proposed that to introduce transparency and accountability in Nepra, all regulatory decisions regarding licensees will be published and made public property.
