Regulatory governance: Electricity industry in Pakistan

Abstract

This paper analyses various governance attributes with reference to NEPRA (National Electric Power Regulatory Authority), a regulatory authority formed in 1997 to protect consumer interests in the provision of electricity, and to ensure an efficient and competitive environment for the electricity generators and distributors. The aim is to find out the reasons behind the poor performance of the electricity sector in Pakistan. Weak administrative governance in NEPRA is prevalent in the form of lack of autonomy, resulting in the overall institutional inability to carry out the desired functions effectively. In addition, NEPRA is lacking in professional expertise to supervise and control the power sector, and establish a rational and equitable pricing regime.