ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has again declared the government’s revenue-based or commercial load shedding policy illegal and directed K-Electric (KE) to immediately stop unannounced, unscheduled and excessive power outages, particularly those affecting compliant and paying consumers. The regulator has also ordered KE to develop and implement alternative technological and administrative measures to control electricity theft and commercial losses instead of resorting to feeder-level load shedding. The directions were issued after Nepra took serious notice of repeated complaints from citizens across Karachi regarding unscheduled, excessive and discriminatory load shedding. The complaints surfaced during the Authority’s monthly public hearings on Fuel Price Adjustments (FCAs) for Distribution Companies (DISCOs) and KE. According to the regulatory findings, the complaints were not isolated incidents but reflected what Nepra described as a systemic problem in the utility’s approach to load management. The authority subsequently initiated proceedings against KE under the applicable legal and regulatory framework. The inquiry found that KE had been enforcing load shedding under what Nepra termed a self-styled AT&C losses policy. The regulator observed that the policy had no recognition under the Nepra Act, applicable rules or the utility’s licence. Nepra further found that KE was routinely exceeding its own declared loadshedding schedules and subjecting consumers to prolonged and unannounced outages. The authority had previously imposed a penalty of Rs50 million on KE through an order dated April 4, 2024, for what it termed egregious conduct, including unjustly penalising compliant consumers and failing to address its operational inefficiencies despite receiving substantial amounts under the operation and maintenance (O&M) head. The latest order makes clear that commercial defaults, electricity theft or high loss ratios on a particular feeder cannot be used as a justification for suspending electricity supply to compliant consumers living on the same feeder. Nepra stressed that KE’s statutory duty to provide electricity services on a non-discriminatory basis could not be subordinated to commercial considerations. The regulator directed the utility to ensure that consumers who regularly pay their electricity bills are not subjected to disconnection or curtailment of supply because of defaults or unlawful activities committed by other consumers. The authority also ordered KE to immediately improve electricity services by ceasing and desisting from all unannounced, unscheduled or excessive load shedding in its service territory. Any load management, it said, must strictly comply with the parameters prescribed under the Nepra Act, applicable rules and regulations and the utility’s licence. Nepra said power supply could be curtailed only in circumstances recognised by the regulatory framework, including technical constraints, system emergencies or absolute generation shortfalls. It categorically stated that revenue-based or AT&C-based load shedding had no legal cover under the Nepra Act or other applicable regulatory provisions. The authority observed that penalising consumers who were fully compliant and regularly paying their bills for financial defaults or electricity theft committed by others in the same locality amounted to discrimination and violated consumers’ fundamental rights. According to Nepra, the prolonged outages in Karachi have consequences extending beyond inconvenience to consumers. The authority pointed out that power disruptions were affecting water distribution networks, healthcare facilities and electric bus operations, particularly during periods of severe climatic distress. It described the consequences as posing serious risks to public welfare and referred to the State’s constitutional responsibility under Article 38 of the Constitution to secure the well-being of citizens. The regulator also noted that actual outage durations across KE’s network were highly disproportionate to the utility’s own stated AT&C policy. According to its findings, scheduled commercial load shedding was effectively being used as a baseline, with additional hours of unannounced load shedding routinely imposed on top of it. This practice, Nepra said, had resulted in compounded power deficits for nearly 2. 37 million consumers, demonstrating a collapse of equitable load management. The authority maintained that KE was required to organise and conduct its operations in accordance with the statutory framework governing electricity distribution and could not adopt operational practices or commercial policies inconsistent with its legal obligations. Nepra also highlighted complaints submitted by the Karachi Chamber of Commerce and Industry (KCCI) regarding excessive commercial-based load shedding affecting a significant number of commercial and industrial consumers in KE’s service territory. Taking notice of the complaints, the regulator ordered a formal investigation and subsequently issued a Show Cause Notice to the utility. The proceedings are currently underway and will be concluded in due course. The authority said KE’s practice of undertaking load shedding on the basis of AT&C losses was fundamentally incompatible with the obligations of a distribution licensee. Under Section 21 of the Nepra Act and Rule 4(f) of the Nepra Performance Standards (Distribution) Rules, 2005, a distribution licensee is required to provide reliable distribution services. The regulator maintained that electricity supply could be curtailed only in accordance with the circumstances recognised under the applicable statutory and regulatory framework, including generation shortfalls or transmission constraints. Nepra reiterated that commercial or revenue-based load shedding had no recognition in the statutory or regulatory framework governing electricity distribution. It termed collective punishment of consumers for the actions of others contrary to the principles of natural justice and individual responsibility. The regulator also referred to concerns raised by the Pakistan Telecommunication Authority (PTA), which reported that extended load shedding was severely affecting telecom sites located on high-loss feeders. According to Nepra, telecom operators were being forced to rely extensively on diesel generators because of prolonged outages, increasing their operating costs and undermining energy-efficiency objectives. The authority expressed concern over these cascading effects on other critical sectors of the economy. Under the latest directions, KE has been instructed to adopt targeted measures to control commercial losses. These include individual disconnections of consumers found to be in default or involved in electricity theft, strictly in accordance with applicable laws and procedures. The utility has also been directed to intensify anti-theft drives and prosecute electricity thieves under the relevant penal laws in coordination with law-enforcement agencies. In addition, Nepra has ordered KE to install Aerial Bundled Cables (ABC) in high-loss areas to reduce technical and commercial losses. The utility is required to prepare a time-bound plan for phased installation of ABC and submit it to the authority within 30 days. KE has further been directed to submit a comprehensive compliance report to Nepra within 30 days of issuance of the order. Nepra observed that despite the earlier Rs50 million penalty for similar violations, KE had not made tangible operational changes to rectify its practices. Instead of relying on targeted technological and administrative interventions—including individual disconnections, anti-theft measures and installation of ABC—the utility continued to rely heavily on feeder-level outages to address commercial losses. The authority described this continued approach as a persistent breach of the regulatory framework. Nepra acknowledged the structural challenges confronting Pakistan’s power sector, including transmission losses, distribution inefficiencies and electricity theft. However, it made clear that these problems could not be addressed through collective punishment of consumers. “The solution to theft is targeted enforcement, not collective punishment, ” the Authority maintained. “The solution to revenue losses is improved billing and collection, not arbitrary feeder disconnections, ” while technical losses should be addressed through infrastructure investment rather than depriving paying consumers of electricity. Commenting on the matter, KE spokesperson said, “K-Electric has taken note of the NEPRA Authority’s order and is currently reviewing its contents in detail. The Company will submit its response within the stipulated timeframe. K-Electric remains engaged with the regulatory authority on the matter. ” Copyright Business Recorder, 2026
Nepra directs KE to stop unannounced loadshedding
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