ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has approved the Distribution Investment Plan (DIP) 2025–30 of GEPCO, incorporating annual and mid-term review “reopeners” to ensure need-based investments and flexibility in response to evolving sector dynamics, irrespective of any future ownership transition. During the hearing on the petition, GEPCO stated that the proposed privatization of DISCOs, including GEPCO, is essentially a policy-level matter within the Government’s domain. It added that the current DIP has been prepared on a “going concern” basis, in line with prudent planning principles and established utility practices, both internationally and locally. The objective, it said, is to ensure uninterrupted, efficient, reliable, and sustainable electricity services for consumers, regardless of any future structural or ownership changes. READ MORE: Nepra approves five-year DIPs for three Discos GEPCO further argued that privatization typically brings changes in corporate governance, investment priorities, and operational strategies. In this context, it proposed that NEPRA should include a “reopener” provision in the DIP framework. This would allow the plan to be revisited and adjusted after privatization to align with the vision, mission, policies, and strategic objectives of new investors or management. According to GEPCO, such flexibility would send a positive signal to potential investors by demonstrating that the regulatory framework is adaptive and supportive of their operational and investment strategies, while also safeguarding consumer service quality and system performance. The company maintained that a reopener mechanism would serve multiple objectives. First, it would reduce investor uncertainty by ensuring they are not bound by pre-privatization commitments that may not align with their future business models. Second, it would protect consumer and sector interests by keeping post-privatization investments under regulatory oversight and performance benchmarks. Third, it would ensure continuity in planning while facilitating a smooth transition from public-sector operations to private management, which may adopt different approaches to network expansion, loss reduction, technology upgrades, and customer service improvements. GEPCO further submitted that this approach strikes a balance between immediate operational requirements and anticipated post-privatization changes. Treating the DIP as a “living document” with a reopener provision, it argued, would ensure both operational stability and future adaptability, aligning the framework with international best practices followed in privatization transitions. Ultimately, GEPCO stated that the objective is to ensure that, under either public or private management, the utility remains capable of delivering reliable, efficient, and consumer-focused electricity distribution services, while also supporting broader policy goals of attracting credible private-sector investment into the power distribution sector. NEPRA observed that the current DIP has been developed for the utility as a going concern, consistent with prudent planning principles and established best utility practices. This approach ensures uninterrupted and reliable electricity supply to consumers, irrespective of future structural or ownership changes. The regulator further emphasized that the privatization of DISCOs, including GEPCO, is a policy matter exclusively within the Government’s domain. NEPRA’s role, it noted, is to ensure a safe, viable, reliable, and resilient distribution network along with efficient service delivery. Accordingly, the DIP is assessed strictly on technical and regulatory merit, focusing only on optimal, necessary, and justified investments. In view of evolving demand patterns, macroeconomic conditions, and sectoral considerations, NEPRA approved GEPCO’s DIP 2025–30 with annual and mid-term review reopeners to ensure need-based investment decisions and regulatory flexibility in response to changing dynamics, regardless of ownership transitions. Copyright Business Recorder, 2026
Nepra approves Gepco’s DIP 2025-30 with flexible review mechanism
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