The Government of Pakistan has recently tabled an Amendment Bill to the National Electric Power Regulatory Authority (NEPRA) Act (Regulation of Generation, Transmission and Distribution of Electric Power Act 1997) to recover the stock of circular debt in the power sector from current consumers of electricity in the country. This has sparked a debate on the burden that will fall on consumers through the electricity tariff spike that will follow. If the Parliament approves the Amendment Bill to the NEPRA Act, consumers will have to pay the existing circular debt worth of Rs. 1.8 trillion. Consumers will face an increase…
