A fresh dispute has emerged between Pakistan’s energy regulator and the government over the practice of revenue-based electricity load management. The issue was highlighted during a public hearing of the National Electric Power Regulatory Authority in Islamabad.
According to Beyond Time News, the regulator confirmed that revenue-based loadshedding is illegal. However, the Power Division maintained that the practice will continue due to financial pressures on the power sector.
Circular Debt Pressure Drives Decision
Officials from the Power Division argued that stopping targeted loadshedding could significantly increase circular debt. They estimated that the debt could rise by more than Rs400 billion if the practice is discontinued.
At present, Pakistan’s circular debt stands at around Rs1.8 trillion, compared to Rs1.6 trillion earlier in the fiscal year. This rising gap continues to create pressure on the energy system.
Regulator Raises Legal Concerns
During the hearing, Nepra member Amina Ahmed clearly stated that revenue-based load management violates existing rules. Despite this, officials from the energy sector confirmed that the practice is still being implemented in different parts of the country.
She also questioned how a practice declared illegal could continue despite repeated regulatory objections. However, no clear response was given during the session.
Read more:Pakistan Power Division Shares Update on Loadshedding Relief
Government Defends Power Strategy
Representatives from the Power Planning and Monitoring Company said that electricity shortages are not severe in all regions. However, they admitted that areas with high losses are more affected by load management measures.
They further explained that this approach is necessary to control financial losses in the system. Otherwise, the burden on the national grid would increase further.
Fuel Costs and Policy Adjustments
At the same hearing, officials also discussed fuel cost adjustments and rising electricity tariffs. The government is reportedly considering removing the petroleum levy on furnace oil to reduce pressure on consumers.
However, this decision depends on approval from the International Monetary Fund, as Pakistan continues to follow its economic programme commitments.
Gas Supply Situation Improves Slightly
Energy officials also shared updates on gas availability for the power sector. Supply has increased from 80 million cubic feet per day (MMCFD) to around 140 MMCFD.
In addition, an LNG shipment is expected to further boost supply by nearly 100 MMCFD. This could raise total gas availability to about 250 MMCFD in the coming days.
Ongoing Energy Sector Challenges
Despite these improvements, Pakistan’s power sector continues to face structural challenges. High losses, rising debt, and fuel shortages are forcing difficult policy decisions.
Meanwhile, authorities are also exploring ways to manage the expansion of protected consumer categories through new tagging systems.
Conclusion
Overall, the situation highlights a clear conflict between regulatory rules and financial realities. While Nepra has declared revenue-based loadshedding illegal, the government argues it remains necessary to prevent deeper financial stress in the energy sector.
