Islamabad: Business leader Shahid Rasheed Butt, former president of the Islamabad Chamber of Commerce, has criticized moves by the Power Division to subordinate the National Electric Power Regulatory Authority (Nepra) to ministerial control, highlighting potential setbacks to consumer rights and power sector privatization.

According to Islamabad Chamber of Commerce and Industry, Butt emphasized that the proposed changes to the Nepra Act 1997 and the Electricity Act 1910 would jeopardize Nepra's independence by placing it under the Power Division's jurisdiction. This shift could discourage investment and harm consumer interests while favoring Independent Power Producers, already blamed for significant economic losses. Butt noted international financial institutions and private entities have voiced concerns regarding these amendments.

The statement from Butt highlighted that during the fiscal year 2024 to 2025, distribution companies' inefficiencies contributed to a rise of approximately Rs. 397 billion in circular debt, with transmission and distribution losses at 17.55 percent, surpassing the permitted limit. He warned that weakening Nepra would delay tariff notifications and hinder the development of a competitive electricity market, ultimately compromising consumer protection and sector stability.

Butt called on parliament to reconsider the proposed legislative changes through a transparent process involving all stakeholders. Any reduction in regulatory independence, he cautioned, could exacerbate inefficiencies, increase electricity costs, and undermine confidence in the power sector's reform efforts.