Federal Minister for Industries and Production, S M Tanveer, has urged the National Electric Power Regulatory Authority (NEPRA) to reject the Indicative System Plan 2025-35, expressing serious concerns over its potential impact on the country's energy sector. In a formal communication addressed to NEPRA, the minister highlighted several critical issues that could jeopardize the stability and affordability of electricity supply in Pakistan.
Key Concerns Raised by the Minister
S M Tanveer emphasized that the proposed plan lacks comprehensive analysis of demand-side management and fails to incorporate efficient utilization of existing generation capacity. He argued that the plan's projections for future electricity demand are overly optimistic and do not align with current economic realities. The minister warned that approving such a plan could lead to excessive capacity payments, which would ultimately burden consumers with higher tariffs.
Impact on Consumer Interests
The minister underscored that the plan, if implemented, would result in significant financial strain on the national exchequer and the general public. He pointed out that the plan does not adequately address the integration of renewable energy sources, which are crucial for reducing dependency on imported fuels and mitigating environmental impacts. Instead, it appears to favor costly and inefficient power generation projects.
Call for Transparency and Revision
Tanveer called for a transparent review process involving all stakeholders, including provincial governments, power producers, and consumer representatives. He urged NEPRA to revise the plan based on realistic demand forecasts, cost-effective generation options, and grid modernization strategies. The minister stressed that any long-term plan must prioritize the financial sustainability of the power sector and protect consumers from undue price hikes.
Recommendations for a Sustainable Energy Future
To ensure a reliable and affordable electricity supply, S M Tanveer recommended that NEPRA reject the current Indicative System Plan and instead develop a new framework that aligns with the government's vision for economic growth and energy security. He suggested incorporating measures to enhance competition, reduce transmission losses, and promote energy conservation. The minister also emphasized the need for a phased transition to cleaner energy sources, supported by robust policy mechanisms.
The development comes as Pakistan grapples with mounting circular debt and frequent power outages. Stakeholders across the energy sector have expressed mixed reactions to the minister's stance, with some applauding the call for fiscal prudence while others caution against delays in capacity expansion. NEPRA is expected to deliberate on the matter in upcoming hearings, where further input from industry experts and civil society will be sought.
