ISLAMABAD – The Prime Minister’s Office (PMO) has asked the Power Division for an update on a controversial policy proposal to legalize recovery-based load shedding. This move aims to overcome regulatory barriers and support reforms in Pakistan’s struggling power sector.
Currently, revenue-based load shedding remains illegal under existing regulations, and Nepra has imposed fines on power distribution companies (Discos) and K-Electric for enforcing it. Nepra Chairman Chaudhry Waseem Mukhtar previously stated that the government should legalize the practice if it intends to continue with it.
In response, the Power Division drafted a proposal titled “Amendments in Legal Framework to Implement Economic Load Management in the Country.” The plan seeks to formally embed recovery-based and loss-based power cuts into the legal structure. A committee of experts from Nepra, CPPA, PPIB, and the Law Division is reviewing the draft.
However, the Ministry of Finance has raised concerns about the plan’s effectiveness. Officials argue that while such load shedding may reduce costs in high-loss areas, the government still pays capacity charges for unused electricity. They also criticized the draft for lacking data to support its claims.
Despite the pushback, the Power Division insists that a legal framework is essential. It says Discos face rising costs and poor recovery in many areas, making continuous electricity supply financially unsustainable. A structured and lawful approach, they argue, will protect the sector from further losses.
Still, sources confirm that Nepra opposes the proposed changes. The Finance Ministry has demanded detailed analysis before approval, warning that without a clear cost-benefit justification, the policy may create more problems than it solves. The proposal is yet to be submitted to the federal cabinet for final decision.