Muhammad Luqman

Energy experts remain skeptical about the feasibility of the Punjab government’s plan to set up its own electric power regulatory authority following the Sindh’s lead, citing the highly integrated nature of Pakistan’s power generation and distribution systems.

According to a spokesperson for the Punjab Energy Department, the proposed authority has been included in the Annual Development Programme (ADP) 2025-26, with a planned completion date of June 30, 2026.

Despite being the country’s largest stakeholder in the power sector, Punjab remains regulated by the federal body, the National Electric Power Regulatory Authority (NEPRA). The province consumes more than 78% of electricity supplied through the national grid and contributes over 84% of total power recovery, the spokesman said.

Under the Indicative Generation Capacity Expansion Plan (IGCEP) 2024-34, federal power planning has narrowed opportunities for provincial power projects, forcing Punjab to rely primarily on off-grid models to tap its indigenous energy potential, including solar, small hydel, waste-to-energy, hydrogen, biomass, and biogas, the spokesperson noted.

Earlier, the Sindh government announced the establishment of the Sindh Electric Power Regulatory Authority (SEPRA) in August, with the stated aim of reducing electricity costs in Karachi by bypassing NEPRA’s tariff structure. Energy experts said the move was intended to ease the burden of rising power tariffs on consumers and industries.

However, energy experts remain skeptical about the feasibility of provincialising electricity regulation. “Pakistan’s current power infrastructure is based on national interdependence, and it cannot be divided among provinces on the simplistic basis of geography,” said Irfan Ali, former federal secretary of the Power Division.

Speaking to Wealth Pakistan, Ali said provincial regulatory authorities could only be effective if provinces established independent generation and transmission systems. He noted that NEPRA regulates the existing federal framework of power generation, transmission, and distribution.

“While the Constitution does not explicitly bar provinces from setting up their own regulators, such authorities would have no jurisdiction over the central generation pool, the national grid, or federally owned distribution companies,” he explained.

According to Ali, provincial regulators would only be relevant for provincially owned generation assets, grid systems, and distribution networks. “But the development of separate provincial grids and distribution systems remains a distant prospect,” he added.

A former NEPRA chairman echoed similar concerns, stating that although the Constitution allows provinces to establish their own dispatch companies and regulatory bodies, such institutions would struggle to function effectively in practice.

Speaking to Wealth Pakistan on condition of anonymity, he said the Sindh chief minister had already directed the provincial energy department to halt work on SEPRA, as a separate authority was unnecessary in the presence of NEPRA.

Some energy experts warned that the creation of provincial regulators could further strain Pakistan’s already fragile power sector, particularly amid the rapid expansion of solar energy. “It is not feasible under the current system,” said Islamabad-based energy expert Eng Arshad Abbasi.

He said provinces would need access to substantial amounts of low-cost electricity to justify independent regulatory bodies—something they currently lack. “In countries like India, states have separate generation systems and independent tariff mechanisms. Pakistan’s power system is far more integrated, making such a model impractical,” Abbasi told Wealth Pakistan.

Credit: INP-WealthPk