Nepra Seeks Repeal of Five Outdated Power Rules in Push to End Regulatory Overlap

 

Pakistan's power regulator has formally asked the federal government to repeal five existing electricity rules that it says have been overtaken by newer regulations, warning that keeping both sets in force creates duplication, conflicting interpretations and legal uncertainty for the country's power sector.

Main News Report

The National Electric Power Regulatory Authority (Nepra) has written to the Cabinet Division seeking the repeal of five rules it considers superseded by newer regulations issued under the amended power sector law, according to a report by Pakistan Business Recorder carried by tradersunion.com.

The regulator argues that the overlapping rules increase the risk of conflicting interpretations and leave uncertainty over which requirements actually apply — a situation affecting licensing, billing and operational standards across the electricity sector.

The Cabinet Division has assigned the repeal proposal to the Power Division for review and preparation. No final federal decision has been made yet.

Background Context

The five rules proposed for repeal are:

• Nepra (Fees) Rules, 2002
• Nepra (Fines) Rules, 2002
• Nepra (Uniform System of Accounts) Rules, 2009
• Nepra Licensing (Distribution) Rules, 1999
• Nepra Performance Standards (Distribution) Rules, 2005

Nepra says these have been replaced by corresponding regulations notified in 2021, 2022 and 2026 — including the Performance Standards (Distribution) Regulations, 2026, which the regulator wants prioritised for repeal action.

In its letter, the regulator cites Section 50(2) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, as amended in 2018, which requires rules and regulations to be brought into conformity with the amended provisions within one year of the amendment's commencement. It also refers to Section 45(1) of the Act, under which the federal government has the authority to make rules on its own initiative or on the regulator's recommendation — meaning, Nepra argues, the power to repeal the older rules also rests with the federal government. The authority has asked for the process to be completed at the earliest.

Reactions and Statements

So far, the public record shows one official chain of action: Nepra's formal letter to the Cabinet Division, and the Cabinet Division's assignment of the proposal to the Power Division for review. Neither the Power Division nor the federal government has issued a final decision.

Industry watchers will note the context: Nepra has been tightening the sector's regulatory framework this year, most recently notifying the Performance Standards (Distribution) Regulations, 2026, which expand how distribution companies are judged on outages, restoration times, complaint handling, power quality and transparency — the very framework now meant to replace the 2005 rules.

Why This News Matters

Regulatory duplication is not an abstract problem for Pakistan's electricity consumers. When old and new rules sit side by side, distribution companies, investors and consumer advocates can read different obligations from different texts — affecting how licences are issued, how bills are computed and what service standards households can demand.

Cleaning up the rulebook matters for investment too. Pakistan's power sector is moving toward a competitive market model, with the government cutting back mandatory power purchases and renegotiating costly generation agreements. Clear, non-duplicative regulation lowers the risk premium for private players — and, in theory, helps keep the system's costs off consumers' bills.

Future Developments

• The Power Division is reviewing the proposal and preparing the repeal case for the Federal Cabinet, which will take the final decision.
• Once repealed, the sector will operate solely under the newer regulations, including the Performance Standards (Distribution) Regulations, 2026.
• Watch for any transitional provisions protecting licences, approvals and agreements already granted under the old rules.

PakInsight Hub will track the Cabinet's decision on the repeal proposal.

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