National Electric Power Regulatory Authority (NEPRA) has reformed how electricity reaches homes and businesses. Government regulators granted 20-year supplier licenses to 7 state-owned electricity distribution companies. The Licenses are valid from April,2023 to April,2043 and were granted under Sections 23E (Electric Power Supply License) and 23F (Duties and responsibilities of an Electric Power Supplier) of the NEPRA Act. These seven companies includes:

Similar licenses was previously issued to Islamabad Electric Supply Co (IESCO), meanwhile two other Distribution companies, Sukkur Electric Power Co. and Tribal Electric Supply Co, are unable to receive their licenses yet.

What Changed?

Before, a national agency managed electricity supply for the regional distributors. Now distributors control the full process in their areas including:

  • Buying electricity from power plants
  • Managing demand and supply
  • Setting local prices (approved by regulators)
  • Billing customers

So each regional distributor runs its own electricity supply chain.

Why Change the System?

The old centralized system had problems:

  • Power cuts and shortages
  • Over and under supply
  • High prices

Regulators believe local control will help distributors balance demand and supply better.

How Will Local Control Help?

Regional companies understand local needs best. With supply control, they can:

  • Accurately forecast demand growth
  • Plan infrastructure investments
  • Buy optimal electricity volumes
  • Respond faster to changes

This should improve reliability and lower costs.

What About Consumers?

Distributors must now provide electricity to all customers in their zone. They can’t favor certain users. Regulated prices protect consumers from unfair rates.

Is There Still Competition?

Yes. The government can license other suppliers to compete in each zone. Distributors must provide open access to their networks. Competition encourages efficiency and innovation.

The Goal: More Affordable, Reliable Power

NEPRA electricity reform aims to leverage local expertise. Regional control of full supply chains can Balance demand and supply, Reduce the waste, Improve the planning which lead to lower the cost and eventually it will impact on the consumer’s electricity bill. For example an household consumer from Gujranwala region can get advantage of it to lower the cost of GEPCO Electricity Bill.

The result should be power that better meets local needs – at an affordable price.

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