Power Minister Awais Leghari highlights NEPRA misrepresentation of power sector realities

ISLAMABAD: Federal Minister for Power Awais Leghari has expressed concern over the National Electric Power Regulatory Authority (NEPRA) report, stating that it fails to present the true picture of Pakistan’s power sector and is based on incomplete and inaccurate data, leading to widespread misunderstandings.

He expressed these views while addressing a press conference at the PTV Headquarters on Sunday. The minister said the report should have been released in August 2025, but even then it did not accurately reflect the improvements made by the government.
He added that NEPRA failed to acknowledge the achievement of targets set by the government for the power sector.

Awais Leghari rejected NEPRA’s claim regarding a Rs780 billion reduction in circular debt, terming the information misleading. He clarified that the reduction includes Rs193 billion due to lower DISCO losses, Rs260 billion achieved through successful negotiations with Independent Power Producers (IPPs), and around Rs300 billion resulting from improvements in macroeconomic indicators.

“All these figures were formally shared with NEPRA; therefore, its apparent ignorance is surprising,” he said.

The federal minister emphasized that circular debt has not increased; instead, for the first time last year, a significant reduction was recorded.

According to him, circular debt has declined from Rs2.4 trillion to Rs1.6 trillion. He added that the government is actively implementing a six-year plan aimed at the complete elimination of circular debt.

Commenting on NEPRA’s observations, Leghari said the regulator failed to recognize improvements in recoveries compared to the previous year. During fiscal year 2025, DISCO recoveries improved from 92.4 percent to 96.6 percent. The recovery gap was reduced from Rs315 billion to Rs132 billion, reflecting a decrease of Rs183 billion. He further stated that in the first six months of FY 2026 (July to December), recoveries continued to improve, with an increase of Rs43 billion compared to the same period last year.

The minister said an effective mechanism has been implemented to recover dues from government departments, under which 25 percent recoveries are being made through the federal adjuster against verified bills. He reaffirmed the government’s commitment to gradually reducing inefficiencies within DISCOs.

Highlighting relief for consumers, Awais Leghari said the national average electricity price has witnessed a clear decline. In March 2024, the average price stood at Rs53.04 per unit, which dropped to Rs42.27 per unit by December 2025.

He acknowledged the decline in electricity demand, attributing it to economic factors and consumers shifting towards alternative energy sources. However, he said the government remains engaged in reforms to further reduce electricity prices, including three-year incentive packages, tariff renegotiations, and debt refinancing.

Criticizing NEPRA’s stance on the Debt Service Surcharge (DSS), the minister said the regulator’s position was contrary to facts. He clarified that the surcharge has existed for many years and was previously used only for interest payments, while the principal debt remained intact.

“Our government ensured that the surcharge is now being used for full repayment of existing debt, which will be completely paid off within five to six years,” he said, adding that arrangements have been made to eventually remove the surcharge from electricity bills.

The federal minister also rejected NEPRA’s decision to absolve K-Electric of responsibility for the increase in circular debt, calling it “entirely incorrect.”

He said K-Electric contributed significantly to the problem by failing to make timely payments. By June 2023, K-Electric’s non-payments had added Rs640 billion to circular debt, while its outstanding liabilities exceeded Rs300 billion as of November 30, 2025.

Leghari said NEPRA set lenient regulatory targets for K-Electric and revealed that the utility had received more than Rs600 billion in subsidies over the past five years, placing an additional burden on the national exchequer and the public.

He added that the Debt Service Surcharge was imposed on K-Electric and other DISCOs due to their role in increasing circular debt.

The minister further criticized NEPRA for historically approving power generation planning without comprehensive studies, stating that the regulator bears major responsibility for the current expensive power generation mix. He said the present government, for the first time, took merit-based decisions and cancelled 8,000 MW of future costly power projects, resulting in estimated savings of over $17 billion for the country.

“NEPRA should have appreciated these efforts,” he remarked. On load management, Awais Leghari said NEPRA’s decision to exclude commercial-based load shedding from the regulatory framework was incorrect.

He clarified that load management based on commercial losses is approved under the national power plan.
The minister highlighted that the government is carrying out extensive and comprehensive digitalization of the power sector, which will enable load management at the transformer level.

He said NEPRA’s information regarding smart meters was also incomplete. So far, 1.6 million smart meters have been installed, with 90 percent communication availability.

He added that NEPRA’s data on meter reading and billing was also insufficient. Electricity consumers have now been given the option of self-meter reading through the “Apna Meter, Apni Reading” mobile application, which is available to all users.

Awais Leghari said NEPRA should have appreciated the government for refunding Rs40 billion to electricity consumers under billing adjustments.
He stressed that DISCO inefficiencies are neither being passed on to consumers nor being added to circular debt, as the government is covering these inefficiencies through its own resources.