Government interference in power sector regulation: a case of Pakistan

Abstract

In December 2016, five independent regulatory authorities viz. National Electric Power Regulatory Authority (NEPRA), Pakistan Telecommunications Authority (PTA), Oil and Gas Regulatory Authority (OGRA) and Public Procurement Regulatory Authority (PPRA) were transferred from the Cabinet Division to their respective line ministries in Pakistan. This step was soon followed by amendments to the 1997 Nepra Act, made to the effect of aligning Nepra’s policies with the broader socio-economic policies of the government. This paper recounts the history of Nepra’s conflict with the federal government, and presents the case for and against regulatory independence, based on a review of selected theoretical and empirical literature. It also describes the policy issue from the perspective of the Institutional Analysis and Design Framework.