The National Electric Power Regulatory Authority (Nepra) has declared revenue-based loadshedding illegal, but the Power Division has refused to halt the practice, citing concerns over rising circular debt.
During a public hearing on fuel cost adjustments, officials confirmed that power distribution companies continue revenue-based loadshedding in high-loss areas to prevent further financial losses.
Authorities warned that ending the practice could add over Rs400 billion to the circular debt, which has surged to around Rs1.8 trillion.
Nepra member Amina Ahmed reiterated that the practice violates regulations. However, officials from the Power Division maintained that it remains necessary to control financial pressures in the power sector.
Officials also revealed that the government is considering removing the petroleum levy on furnace oil to reduce electricity tariffs, subject to approval from the International Monetary Fund.
According to Naveed Qaisar of the Power Planning and Monitoring Company, there is no electricity shortage in Karachi, but K-Electric continues load management in areas with high losses.
He added that gas supply to the power sector has increased from 80 to 140 MMCFD, with an additional LNG cargo expected to raise supply to 250 MMCFD in the coming days.
The government is also reviewing options to expand the protected consumer category through improved targeting mechanisms.
The ongoing dispute highlights regulatory challenges in Pakistan’s power sector, as authorities balance legal obligations with financial constraints.