REGULATION OF GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC POWER ACT, 1997

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THE REGULATION OF GENERATION, TRANSMISSION AND 
DISTRIBUTION OF ELECTRIC POWER ACT, 1997 
(XL of 1997) 
CONTENTS 
CHAPTER I  
GENERAL 
1. Short title, extent and commencement  
2. Definitions 
CHAPTER II 
ESTABLISHMENT OF AUTHORITY 
3. Establishment of the Authority 
4. Resignation and removal of Chairman, etc 
5. Meetings of the Authority, etc 
6. Decisions of the Authority 
7. Powers and functions of the Authority 
8. Remuneration, etc., of Chairman and members 
9. Chairman, etc. to be public servant 
10. Staff and advisers, etc 
11. Tribunals 
12. Delegation 
13. Funds 
14. Accounts 
CHAPTER III 
LICENSES 
15. Generation licence 
16. Transmission licence 
17. National Grid Company 
18. Responsibilities of National Grid Company 
19. Special purpose transmission licence 
20. Distribution licenses 
21. Duties and responsibilities of distribution licensees 
22. Sale to bulk-power consumers 
23. Sale of electric power to other distribution companies 
24. Licensees to be companies 
25. Licences of Territory Served by KESC 
26. Modifications 
27. Assignment of licence prohibited 
28. Suspension and revocation 
29. Penalties 
30. WAPDA and SHYDO to be licensees 
31. Tariff 
32. Investment and power acquisition Programmes 
33. Organizational matters 
34. Performance Standards 
35. Industry standards and codes of conduct 
36. Uniform system of accounts 
37. Review of public sector projects 
CHAPTER-IV ADMINISTRATION 
38. Regulations 
39. Complaints 
40. Enforcement of orders of the Authority 
41. Sum payable to the Authority to be recoverable as land revenue 
42. Reports of the Authority 
43. Inspection by public 
44. Information 
45. Relationship to other laws 
46. Rules 
47. Provincial offices of inspection 
TEXT 
REGULATION OF GENERATION, TRANSMISSION AND DISTRIBUTION 
OF ELECTRIC POWER ACT, 1997 
(XL of 1997) 
[16th December, 1997] 
An 
Act 
to provide for the regulation of generation transmission and distribution of electric 
power 
WHEREAS it is expedient to provide for the regulation of generation, 
transmission and distribution of elect ric power and matters connect therewith and 
incidental thereto; 
It is hereby enacted as follows:– 
CHAPTER I  
GENERAL 
1. Short title, extent and commencement.– (1) This Act may be called the 
Regulation of Generation, Transmission and Distribution of electric Power Act, 1997.  
(2) It extends to the whole of Pakistan. 
(3) It shall come into force at once. 
2. Definitions.– In this Act, unless there is anything repugnant in the subject or 
context,– 
(i) "Authority” means the  National  Electric  Power  Regulatory  
Aut hority  established  under section 3; 
(ii) "bulk-power consumer" means a consumer who purchases or 
receives electric power, at  one premises, in an amount of one 
megawatt or more or in such other amount and voltage level and with 
such other characteristics as the Authority may determine and the  
Authority may determine different amounts and voltage levels and with 
such other characteristics for different areas; 
(iii) "Chairman" means the Chairman of the Authority; 
(iv) "consumer" means a person or his successor-in-interest who 
purchases or receives electric  power for consumption and not for 
delivery or re-sale to others, including a person who owns or occupies 
a premises where electric power is supplied; 
(v) "distribution" means the ownership, operation, management or control 
of distribution facilities  for the movement or delivery or sale to 
consumers of electric power but shall not  include the ownership, 
operation, management and control of distribution facilities located on 
private property and used solely to move or deliver electric power to 
the person owning, operating,  managing and controlling those facilities 
or to tenants thereof shall not constitute distribution; 
(vi) "distribution company" means a person engaged in the distribution of 
electric power;  
(vii) "distribution facilities" means electrical facilities operating at 
distribution voltage and used for the mov ement or delivery of  electric 
power; 
(viii) “distribution voltage” means any voltage below mini mum transmission 
voltage; 
(ix) "electric power" means electrical energy or the capacity for the 
production of electrical power; 
(x) "electric power services" means the generation, transmission or 
distribution of electric power and all other services incidental thereto; 
(xi) "generation" means the ownership, operation, management or 
control of generation facilities for delivery or sale of electric power 
and not solely for consumption by the person owning, operating, 
managing, and controlling those facilities; 
(xii) "generation co mpany" means a pers on eng aged in the generation  of 
electric power;  
(xiii) "generation facility" means the electrical facility used for the 
production of electric power; 
(xiv) "inter-connection service" means the connection of one company's 
electrical facilities to another company's electrical facilities; 
(xv) "KESC" means the Karachi Electric Supply Corporation, a public 
limited company, incorporated under the Companies Act, 1913; 
(xvi) "licence" means a licence issued for generation, transmission or 
distribution under this Act; 
(xvii) "licensee" means a holder of a licence; 
(xviii) "member" means a member of the Authority including the Chairman; 
(xix) "minimum transmission voltage" means sixty-six kilovolts or such 
other voltage that the  Authority may determine to be the minimum 
voltage at which electrical facilities are operated when used to deliver 
electric power in bulk; 
(xx) "National Grid Company" means the person engaged in the 
transmission of electric power and granted a licence under section 17; 
(xxi) "Person" shall include an association of persons, concern, company, 
firm or undertaking; 
(xxii) "Prescribed" means prescribed by rules made under this Act; 
(xxiii) "public sector project" means generation, transmission or distribution 
facilities constructed,  owned, managed or controlled by the Federal 
Government, a Provincial Govern ment, a local authority or any body 
owned or controlled by any such Government or authority; 
(xxiv) "regulations" means regulations made under this Act; 
(xxv) "SHYDO" means the Sarhad Hydel Development Organization, 
established under the Sarhad Hydel Develop ment Organization Act, 
1993 (NWFP Act No.1 of 1993); 
(xxvi) "transmission" means the ownership, operation, management or 
control of transmission facilities; 
(xxvii) "transmission facilities" means electrical transmission facilities 
including electrical circuits, transformers and sub -stations operating at 
or above the minimum transmission voltage but shall not include– 
(a) electrical circuits forming the immediate connection between 
generation facilities and the transmission grid to the extent 
that those circuits are owned by a generation company and are 
directly associated with that company's generation facilities; 
(b) specified facilities operating at or above the minimum 
transmission voltage which  the Authority, upon an application 
by licensee under section 20, deter mines that such facilities 
shall be owned and operated by a distribution licensee; and 
(xxviii) "WAPDA" means the Pakistan Water and Power Development 
Authority established under  the Pakistan Water and Power 
Development Authority Act, 1958 (W.P. Act XXXI of 1958). 
CHAPTER II 
ESTABLISHMENT OF AUTHORITY 
3. Establishment of the Authority.– (1) As soon as may be, but not later than 
thirty days after the commencement of this Act, the Federal Government shall, by 
notification in the official Gazette,  establish a Nationa Electric Power Regulatory 
Authority consisting of a Chairman to be appointed by the Federal Government and 
four members, one from each Province, to be appointed by the Federal Government 
after considering tile recommendations of the respective Provincial Governments. 
(2) There shall be a Vice -Chairman of  the Authority,  appointed from 
amongst the members for a period of one year, by rotation, in the following order, 
namely: 
(i) the member representing the Province of Baluchistan; 
(ii) the member representing the Province of North-west Frontier; 
(iii) the member representing the Province of the Punjab; and 
(iv) the member representing the Province of Sind. 
 (3) [The Chairman shall be an eminent professional of known integrity 
and competence with at least twenty years of related experience in law, business, 
engineering, finance, accounting, econo mics, the electric utility business, public 
administration or management]
1
 
                                                           
1Sub. for “The Chairman shall be an eminent professional of known integrity and competence with at least twenty years of 
related experience in law, business, engineering, finance, accounting, ec onomics or the electric utility business” by  the 
Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance, 2008 (valid upto 20-
06-2008). 
Provided that the Chairman shall preferably be a person who is or has been 
a judge of a HighCourt or the Supreme Court.]
2
 
(4) Every member shall be a professional of known integrity and 
competence with at least fifteen  years of related experience in law, business, 
engineering, finance, accounting, economics or the electric utility business. 
(5) The Chairman and a member shall, unless he resigns or is removed 
from office earlier as hereinafter provided, hold office for a term of four years and 
shall be eligible for re-appointment for similar term: 
Provided that 
3
[a Chairman or a member] shall not be appointed under sub -
section (1) if he has already attained the age of sixty-five years. 
(6) No act or proceeding of the Authority shall be invalid by reason only of 
the existence of a vacancy in, or defect in, the constitution of the Authority. 
(7) The principal office of the Authority shall be in Islamabad and it may 
set up offices at such place or places as it may deem appropriate. 
4. Resignation and removal of Chairman, etc.– (1) The Chairman, or a 
member may, by writing under his hand, resign from his office. 
(2) The Chairman or a member may be removed by the Federal 
Government from his office  if, on an inquiry by the Federal Public Service  
Commission, he is  found incapable  of perf orming the functions of his office by 
reason of mental or physical incapacity or has been found guilty of misconduct. 
5. Meetings of the Authority, etc.– (1) The meetings of the Authority shall be 
presided over by the Chairman or, in his absence, the Vice-Chairman. 
 (2) Three members shall constitute a quorum for meetings of the 
Authority requiring a decision by the Authority. 
(3) The members shall have reasonable notice of the time and place of the 
meeting and the matters on which a decision by the Authori ty shall be taken in such 
meeting. 
(4) The decision of the Authority shall be taken by the majority of its 
members present, and in case of a tie, the person presiding the meeting shall have a 
casting vote. 
6.  Decisions of the Authority.– All orders, determinations and decisions of 
the Authority shall be taken in writing and shall identify the deter mination of the 
Chairman and each member. 
7. Powers and functions of the Authority .– (1) The Authority shall  be 
exclusively responsible for regulating the provision of electric power services. 
(2) In particular and without prejudice to the generality of the foregoing 
power, only the Authority, but subject to the provisions of sub-section (4), shall– 
(a) grant licenses for gener ation, trans mission and distrib ution of electric 
                                                           
2Added by the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance, 2001. 
3Subs. for “a Chairman or a member” by ibid. 
power; 
(b) prescribe procedures and standar ds for  investment program mes by 
generation, transmission and distribution companies; 
(c) prescribe and enforce perfor mance standards  for generation, 
transmission and distribution companies; 
(d) establish a uniform system of accounts by generation, transmission 
and distribution companies; 
(e) prescribe fees including fees for grant of licenses and renewal thereof; 
(f) prescribe fines for contravention of the provisions of this Act and 
(g) perform any other function which is incidental or consequential to any 
of the aforesaid functions. 
(3) Notwithstanding the provisions of sub -section (2) and without prejudice 
to the generality of the power conferred by sub-section (1) the Authority shall– 
(a) determine tariff, rates, charges and other terms and conditions for 
supply of electric power services by the generation, transmission and 
distribution companies and recommend to the Federal Government for 
notification; 
(b) review organizational affairs of generation, transmission and 
distribution companies to avoid any adverse effect on the operation of 
electric power services and for continuous and efficient supply of such 
services; 
(c) encourage uniform industry standar ds and code of conduct for 
generation, transmission and distribution companies; 
(d) tender advice to public sector projects; 
(e) submit reports  to the Federal Govern ment in respect  of activities of  
generation, transmission and distribution companies; and 
(f) perform any other function which is incidental or consequential to any 
of the aforesaid functions. 
(4) Notwithstanding anything contained in this Act, the Government of a 
Province may construct power houses and grid stations and lay transmission lines 
for use within the Province and de termine the tariff for distribution of  electricity 
within the Province. 
(5) Before approving the tariff for the supply of electric power by 
generation companies using hydro-electric plants, the Authority shall consider the 
recommendations of the Government of the Provin ce in which such gen eration 
facility is located. 
(6) In performing its functions under this Act, the Authority shall, as far 
as practicable, protect the interests of consumers and companies providing electric 
power services in accordance with guidelines, not inconsistent with the provisions of 
this Act, laid down by the Federal Government. 
8. Remuneration, etc., of Chairman and members.– (1) The Chairman and 
members shall be  paid such emoluments as may be determined by the Federal 
Government which shall not be to their disadvantage during their term of office. 
(2) The Chairman and members shall not, during their term of office, 
engage themselves in  any other service, business, vocation or employment and 
before the expiration of two years thereof enter into the employment of, or accept 
any advisory or consultancy relationship with, any person engaged  in the 
generation, transmission or distribution of electric power in Pakistan or any related 
undertaking. 
(3) The Chairman and members shall not have any direct or indirect 
financial interest, or have  any connection with any company connected with the 
provision of electric power services for so long as he holds office and for a period of 
two years thereafter. 
9. Chairman, etc. to be public servant .– The Chairman, members, staff, 
experts, consultants, advisors and other employees of the Authority, when acting 
or purporting to act in pursuance of any of the provisions of this Act or the rules 
and regulations, shall be deemed to be public  servants within the meaning of 
section 21 of the Pakistan Penal Code, 1860 (Act XLV of1860). 
10. Staff and advisers, etc.– (1) To carry out the purposes of this Act, the 
Authority may, from time to time, employ officers, members of its staff, experts, 
consultants, advisors and other employees on such ter ms and conditions as it may 
deem fit. 
(2) All officers, members of staff, experts, consultants, advisors and 
other employees e mployed by the Authority shall not be deemed to be civil 
servants within the meaning of the Civil Servants Act, 1973 (Act LXXI of 1973). 
11. Tribunals.– The Authority may, from amongst its professional staff, 
establish special tribunals for resolving contractual disputes between licensees or 
such other matters as the Authority may assign. 
12. Delegation.– The Authority may delegate to the Chairman, a member or 
any of its officers or a special tribunal constituted under section 11, all or any of its 
powers, functions or duties under this Act, except– 
(a) the power to grant, reject, a mend, vary or  revoke licenses or a ny 
condition thereof;  
(b) the power to determine or modify tariffs; 
(c) the power to approve, disapprove or modify an investment program or 
a power acquisition program; 
(d) the power to make or repeal rules and regulations made under this Act; 
and 
(e) the power to make orders on an application for review of its orders. 
13. Funds.– (1) The operations of the Authority shall be funded from– 
(a) grants from the Federal Government, including an initial grant of one 
hundred million rupees; and 
(b) fees and fines collected by it as prescribed from time to time. 
14. Accounts.– (1) The Authority shall maintain complete and accurate books of 
accounts of its actual expenses and receipts. 
(2) The Accounts of the Authority shall be audited annually  by the Auditor 
General of Pakistan. 
CHAPTER III 
LICENSES 
15. Generation licence.– (1) No person shall except under the authority of a 
licence issued by  the Authority under this Act and subject to the conditions 
specified in this Act and as may be i mposed by the Authority, cons truct, o wn or 
operate a generation facility. 
(2) An application for the grant of a l icence for generation facility shall 
specify–  
(i) the type of facility for which the licence is applied; 
(ii) the location of the generation facility; and 
(iii) the expected life of the generation facility. 
(3) The Authority may, after such enquiry as it may deem appropriate 
and subject to the conditions specified in this Act and as it may impose, grant a 
licence authorizing the licensee to construct, own or operate a conne cted 
generation facility. 
(4) In the case of a generation facility connecting directly or indirectly to 
the transmission facilities of the national grid company, the licensee shall make the 
generation facility available to the national grid company for the safe, reliable, non-
discriminatory, economic dispatch and operation of the national transmission grid 
and connected facilities; subject  to the compensation fixed by the Authority for 
voltage support and uneconomic dispatch directed by the national grid company. 
16. Transmission licence.– (1) No person shall except under the authority of 
a licence issued  by the Authority under this Act and subject to the conditions 
specified in this Act and as may be i mposed by the Authority, engage in  the 
transmission of electric power. 
(2) An application for a licence for the trans mission of electric power shall 
specify– 
(i) the type of service for which the licence is being sought; and 
(ii) the territory with location maps and plans to which ele ctric power shall 
be transmitted. 
17. National Grid Company.– (1) The Authority may, after such enquiry as it 
may deem appropriate and subject to the conditions specified in this Act and as It 
may impose, grant a licence authorizing the licensee, to engage in the transmission 
of electric power: Provided that only one such licence s hall be granted at any one 
time. 
(2) The licensee referred to in su b-section (1) shall have exclusive right to 
provide trans mission service in the territory specified in  such licence except the 
territory served by KESC. 
18.  Responsibilities of National Grid Company.– (1) The national grid 
company shall be responsible  to operate and provide safe, reliable transmission 
and interconnection services on a non discri minatory basis, including to a bulk 
power consumer who proposes to become directly connected to its facilities. 
(2) Without prejudice to the foregoing responsibi lities, the national g rid 
company shall– 
(a) make available to the general public the tariff specifying the 
Authority's approved rates, charges and other terms and conditions 
for transmission and interconnection services; 
(b) not levy any rate or charge or impose any condition for the 
transmission of electric power which has not been approved by the 
Authority as a tariff; 
(c) not cause a division or any associated undertaking to engage in 
generation and distribution: 
Provided that this clause shall not apply to the KESC and WAPDA 
so long as their electric systems remain integrated; and 
(d) develop, maintain and publicly make available, with the prior approval 
of the Authority,  an investment program for satisfying its service 
obligations and acquiring and selling its assets. 
19. Special purpose transmission licence.– Notwithstanding anything 
contained in section 17, the Authority may, in the public interest, grant a licence 
authorizing the licensee to engage in the construction, ownership maintenance and 
operation of specified transmission facilities on the conditions that the licensee shall– 
(a) provide transmission and inter-connection services to the national grid 
company and to others, wherever necessary, at such rates, charges 
and terms and conditions as the Authority may determine; 
(b) purchase interconnection service from the national grid company as 
may be necessary and  to connect its facilities to the national 
transmission grid at the rates, charges and ter ms and conditions 
determined by the Authority; 
(c) make its transmission facilities available for operation by the national 
grid company consistent  with applicable instruc tions established by 
such company; 
(d) follow the performance standards laid down by the Authority for 
transmission of electric power, including safety, health and 
environmental protection instructions issued by the Authority or any 
Government agency; 
(e) make public the tariff specifying the rates, charges and other terms 
and conditions of service for transmission and interconnection services 
determined by the Authority; and 
(f) maintain accounts in accordance with the manner and procedure 
prescribed by the Authority. 
20. Distribution licenses.– (1) No person shall, except under the authority of a 
licence issued by the Authority under this Act and subject to the c onditions specified 
in t his Act and as may be imposed by the Authority, engage in the  distribution of 
electric power. 
(2) An application for a licence for distr ibution of electric po wer shall 
specify–  
(i) the type of service for which licence is being sought; 
(ii) the territory in which electric power shall be distributed; and 
(iii) the source and scope of electric power and rates paid by it. 
21. Duties and responsibilities of distribution licensees.– (1) The Authority 
may, after such enquiry as it may deem appropriate and subject to the conditions 
specified in this Act and as it may impose, grant a licence for d istribution of electric 
power. 
(2) The licensee shall– 
(a) possess the exclusive right to provide, for such period as may be 
specified in the lice nce, distribution service and to make sales of 
electric power to consumers in the ter ritory sp ecified in the lice nce 
and to frame schemes in respect of that territory: 
Provided that a generation company may make sales of electric power to 
bulk- power consumers within such territory as the Authority may, subject to section 
22, for a period of fifteen years, allow; 
(b) be responsible to provide distribution service and make sale of 
electric power within its territory on a non-discriminatory basis to all the 
consumers who meet the eligibility criteria laid down by the Authority: 
Provided that– 
(i) the licensee may not be required to make sale of electric power 
to a bulk -power consu mer who has contracted for electric 
power supply from another supplier; and 
(ii) the licensee may disconnect the provision of electric power to 
a consumer for default  in payment of power charges or to a 
consumer who is involved in theft of electric power; 
(c) publicly make available tariff specifying the Authority's approved 
rates, charges and other terms and conditions for distribution s ervices 
and power sales to consumers; 
(d) establish, within three months of the Issue of its licence for 
distribution of electric power and make available to pu blic, instructions 
specifying– 
(i) procedures for obtaining service; and 
(ii) the manner and procedure for metering, billing and collection of' 
the licensee's approved  charges and disconnection in case of 
non- payment of charges, electric power theft and use of energy 
for purposes other than for which it was supplied  and 
procedures for re-connection and recovery of arrears and 
other charges; 
(e) make its transmission facilities available for operation by the national 
grid company consistent with ap plicable instruc tions established by 
such company; 
(f) follow the performance standards laid down by the Authority for 
distribution and trans mission of electric power, including safety, 
health and environmental protection instructions issued by the 
Authority or any Governmental agency; 
(g) maintain accounts in accordance with the manner and procedure 
laid down by the Authority; and 
(h) develop, maintain and publicly make available, with the prior approval 
of the Authority,  an investment program for satisfying its service 
obligations and acquiring and selling its assets. 
22. Sale to bulk-power consumers.– (1) Notwithstanding anything contained in 
section 21, for a period of fifteen years from the commencement of this Act, the 
Authority may permit a generation  company or a distribution company to sell 
electric power to bulk-power consumers located  in the service territory of another 
distribution company and such permission shall be granted– 
(i) on a case to case basis on an application made in writing by a 
generation company or a distribution company; and 
(ii) if the bulk-power consumer has not defaulted in previous charges of 
electric power to any other distribution company. 
(2) Where a bulk-power consumer intends to stop purchase of electric 
power from a distribution co mpany, it shall convey its intention by notice in 
writing three years before such stoppage: 
Provided that such consumer shall continue to make payments to the 
distribution company equal to the amount of cross-subsidy for uneconomic service 
for which it would otherwise have provided through purchase of electric power by 
the bulk power consumer. 
23. Sale of electric power to other distribution companies.– A distribution 
company may sell  electric power to other distribution companies and distribute 
electric power sold by generation companies to other distribution companies or to 
bulk-power consumers within its service territory subject  to the provisions of 
section 22 in accordance with the rates, charges and other terms and conditions of 
service for such sales as approved by the Authority. 
24 Licensees to be companies.– Except the WAPDA, the SHYDO or any 
other person specially  exempted by the Authority, a generation, transmission or 
distribution licence shall not be granted  to any person unless it is a company 
registered under the Companies Ordinance, 1984 (XLVII of 1984). 
25. Licences of Territory Served by KESC.– (1) Notwithstanding anything 
contained in this Act and subject to the provisions of this section, the Authority may 
grant licenses for generation, transmission and distribution of electric power to one 
or more licensees for the territory served by the KESC at the time of commencement 
of this Act. 
(2) For a period of six months from the commencement of this Act, the 
KESC shall be deemed to be a licensee under this Act and, shall during the said 
period apply for an appropriate licence in accordance with the provisions of this Act. 
(3) Where a licence under this section is granted to the KESC, the 
conditions applicable to a licensee under this Act for generation, transmission and 
distribution of electric power, as the case may be, shall equally be applicable to the 
KESC. 
26. Modifications.– If the Authority is of the opinion that it is in the public 
interest, it may, with the consent of the licensee, amend or vary the conditions of 
any licence issued under this Act and  in the absence of licensee's consent, the 
Authority shall conduct a public hearing on whether the proposed  amendment or 
variance is in the public interest and shall make a determination consistent with the 
outcome to this hearing. 
27. Assignment of licence prohibited.– A licensee for generation, transmission 
and distribution  of electric power shall not, without the prior approval of the 
Authority, surrender, assign or transfer its licence to any person. 
28. Suspension and revocation.– (1) The Authority may suspend or revoke 
any licence issued under this Act for consistent failure of the licensee to comply 
with the conditions of the licence: 
Provided that before taking action under this section, the Authority shall 
issue a notice to show  cause and may provide an opportunity to rectify the 
omission subject to such conditions as the Authority may specify. 
(2) Where the Authority revokes or suspends a licence, it may undertake 
all or any of the following actions for continuance of the fa cilities covered under  the 
licence, namely– 
(a) permit the lice nsee to continue operating such facilities  under such 
terms and conditions as the Authority may specify; 
(b) contract with another person to immediately t ake over the operation of  
the facilities; or 
(c) appoint an administrator to take over the operation of the facilities. 
(3) The actions specified in sub-section (2) may continue until a 
successor licensee takes over  the charge of  the facilities on such terms and 
conditions as the Authority may determine, including  payment of compensation 
for the plant, machinery and other equipment installed at a facility of the licensee 
whose licence was revoked. 
29. Penalties.– In addition to any penalty to which a licensee may be liable under 
section 28, the Authority may impose a fine on the licensee which may extend to 
three hundred thousand rupees for  each violation for each day and where any 
contravention continues, may impose a higher penalty as may be prescribed: 
Provided that the licensee shall, before imposition of any penalty under this 
section, be given a notice to show cause and be provided  with an opportunity of 
being heard. 
30. WAPDA and SHYDO to be licensees.– (1) Notwithstanding anything 
contained in this Act  for a period of six months from the commencement of this 
Act, the WAPDA and the SHYDO shall be deemed to be licensees under this Act, 
and shall, during the said period, apply for appropriate licenses in accordance with 
the provisions of this Act. 
(2) Where a licence under this section is granted to the WAPDA or the 
SHYDO, the conditions  applicable to a licensee under this Act for generation, 
transmission and distribution of electric power, as the case may be, shall equally be 
applicable to WAPDA or SHYDO. 
31. Tariff.– (1) As soon as may be, but not later than six months from the 
commencement of this Act, the Authority shall determine and prescribe procedures 
and standards for determination, modification  or revision of rates, charges and 
terms and conditions for generation of electric power, trans mission, inter-
connection, distribution services and power sales to consumers by licensees and 
until such procedures and standards are prescribed, the Authority shall determine, 
modify or revise such rates, charges and terms and conditions in accordance with 
the directions issued by the Federal Government[: 
4
[Provided that the Authority shall, on quarterly basis, determ ine overall electricity 
tariff and intimate the same to the Federal Government for notification in the official 
Gazette.] 
(2) The Authority while determining the standards referred to in subsection 
(1) shall–  
(a) protect consumers against monopolistic and oligopolistic prices; 
(b) keep in view the research, development and capital investment 
program costs of licensees; 
(c) encourage efficiency in licensees' operations and quality of service; 
(d) encourage economic efficiency in the electric power industry; 
(e) keep in view the economic and social policy objectives of the 
Federal Government; and 
(f) determine tariffs so as to eli minate exploitation and minimize economic 
distortions.  
(3) The procedures established under sub-section (1) shall include– 
(a) time frame for decision by the Authority on tariff applications; 
(b) opportunity for customers and other interested parties to 
participate meaningfully in the tariff approval process; and 
(c) protection for refund, if any, to custo mers while tariff decisions 
are pending. 
(4) Notification of the Authority's approved tariff, rates, charges, and 
other terms and conditions  for the supply  of electric power services by 
generation, transmission and distribution companies shall be made, in the official 
                                                           
4by the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Ordinance 2009. 
Gazette, by the Federal Government upon intimation by the Authority  [within a 
period of fifteen days of such intimation except where the Federal Government 
refers the matter to the Authority for reconsideration under sub-section (4A)] 
[Provided further that the Authority shall, on a monthly basis and not later 
than a period of seven  days, review the fuel charges in the approved tariff on 
account of any variation whatsoever and notify such revision in the official Gazette 
for the purposes of approved tariff applicable with effect from the said notification.]
5
 
[(4A) The Federal Government may, as soon as possible but not later 
than fifteen days of rec eipt of the Authority’s intimation, require the Authority to 
reconsider its determination of tariff, rates, charges and other terms and conditions 
made under sub-section (1) and the Authority shall reconsider and determine the 
same anew within a period of fifteen days from the  date of the reference by the 
Federal Government. 
(4B) Within three days of the expiry of the period available to the 
Authority under sub- section (4A), the Federal Government shall notify in the official 
Gazette,– 
(a) the tariff reconsidered and determined by the Authority under sub-
section (4A), if available; or 
(b) where the Authority has not concluded the reconsideration, the tariff 
determined by the Authority under sub-section (1). 
Inserted by ibid. 
6
[Provided that the Federal Government may, as soon as may be, but not 
latter than fifteen days  of receipt of the Authority's intimation, require the Authority 
to reconsider its deter mination of such tariff, rates, ch arges and oth er terms a nd 
conditions. Whereupon the Authority shall, within fifteen days, determine these 
anew after reconsideration and intimate the same to the Federal Government: 
Provided further that the Authority shall, on a monthly basis  review and 
revise the approved tariff on account of any  variations in the fuel charges and 
policy guidelines as the Federal Government may issue in this behalf and 
recommend the tariff so re vised to t he Federal Government f or notification in the 
official Gazette.” by ibid.] 
 (4C) [Notwithstanding anything contained in this section, the Authority 
shall continue to conclude its reconsideration under sub-section(4A) and the effect 
of such reconsideration shall be adjusted by the Authority in the tariff, rates, 
charges or other terms and conditions determined by it under sub-section(1) for the 
subsequent period.]
7
 
                                                           
5
Inserted by ibid. 
6Sub. for “Provided that the Federal Government may, as soon as may be, but not latter than fifteen days  of receipt of the 
Authority's intimation, require the Authority to reconsider its determination of such tariff, rates, charges and other terms and 
conditions. Whereupon the Authority shall, within fifteen days, determine these anew after reconsideration and intimate 
the same to the Federal Government: 
Provided further that the Authority shall, on a monthly basis  review and revise the approved tariff on account of any  
variations in  t he  fuel  charges  a nd  policy guidelines as  t he  Fede ral Government  may issue  in  t his  beha lf  a nd 
recommend the tariff so revised to the Federal Government for notification in the official Gazette.” by ibid. 
7
Inserted by ibid 
(5) [Each distribution company shall pay to the Federal Government such 
surcharge as the Federal Government, from time to time, notify in respect of each 
unit of electric power sold to the consumers and any amount paid under this sub-
section shall be considered as a cost incurred by the distribution co mpany to be 
included in the tariff determined by the Authority.]
8
 
32. Investment and power acquisition Programmes.– (1) The Authority 
shall, within eighteen  months from the commencement of this Act, prescribe 
procedures and standards for the Authority 's prior approval of the transmission 
companies' and distribution companies' investment and power acquisition 
programmes. 
(2) Any procedure prescribed by the Authority under this section shall 
advance the goal of minimizing regulatory oversight of contracts entered into by the 
national gird company and distribution companies. 
(3) Any investment program or power acquisition program, approved by 
the Authority under this section shall take into account the n ational energy plans 
issued by the Federal Government. 
(4) Upon the Authority's approval of an investment programmes or a 
power acquisition progra m, the Authority shall, subject to such terms and 
conditions including rates and charges of electric power, per mit the  distribution 
company to enter into long term contracts for power purchases. 
33. Organizational matters.– Subject to the procedures established by the 
Authority under this  Act, the Authority may, in the public interest, with or without 
modifications, approve the following activities by a  licensee for generation, 
transmission and distribution, namely:– 
(a) the undertaking of a merger or a major acquisition or sale of facilities; 
(b) the expansion of the licensee’s business activities; and 
(c) the undertaking of a re -organization of the licen see’s business 
structure. 
34. Performance Standards.– The Authority shall prescribe performance 
standards for generation,  transmission and distribution companies to encourage 
safe, efficient and reliable service, including standards for– 
(i) service characteristics such as voltage and stability; 
(ii) scheduled and unscheduled outages; 
(iii) reserve margins where applicable; 
(iv) time required to connect new customers; and 
(v) principles and priorities of load shedding. 
35. Industry standards and codes of conduct.– The Authority shall encourage 
the develop ment of industry standa rds and unif orm codes of conduct so as to 
provide– 
                                                           
8Added by the Finance Act, 2008 
(a) planning criteria for safety, r eliability and cost e ffectiveness of 
generation, transmission and distribution facilities; 
(b) construction practices and standards of such facilities;  
(c) operating standards and procedures; 
(d) maintenance schedules; 
(e) maintenance of adequate spinning reserves and plans to satis fy 
demand; 
(f) equipment specification and standardization; and 
(g) load-shedding and restoration procedures. 
36. Uniform system of accounts.– The authority  shall prescribe a uniform 
system of accounts which shall  be followed  by the licensee of generation, 
transmission and distribution facilities within such period as may be prescribed. 
37. Review of public sector projects.– (1) For the purposes of co-ordination, in 
the case of any public sector project, the advice of the Authority shall be sought 
by the agency planning to undertake such project. 
(2) The provision of sub-section (1) shall not apply to public sector 
projects which do not supply electricity to the national grid. 
CHAPTER-IV 
ADMINISTRATION 
38. Provincial offices of inspection.– (1) Each Provincial Government shall–  
(a) establish offices of inspection that shall be empowered to– 
(i) enforce c ompliance with dist ribution co mpanies' in structions 
respecting metering, billing, electricity consumption charges and 
decision of cases of theft of energy; and 
(ii) make determination in respect of disputes over metering, billing 
and collection of tariff and  such powers may be conferred on the 
Electric Inspectors appointed  by the Provincial Government 
under section 36 of the Electricity Act, 1910 (Act IX of 1910), 
exercisable, in addition to their duties under the said Act. 
(b) establish procedures whereby distribution companies and consumers 
may bring violations  of the instructions in respect of metering, billing 
and collection of tariff and other connected matters before the office of 
inspection; and 
(c) enforce penalties deter mined by the Provin cial Govern ment for any 
such violation. 
(2) The Provincial Governments may, upon request by the Authority, 
submit to the Authority– 
(a) a copy  of any document in  the charge of  the Provincial  Government 
relating to Provincial offices of inspection; and 
(b) other reports, statements and information as the Authority determines 
to be necessary or appropriate  for the Authority's periodic assessment 
of the effectiveness of inspection made by Provincial  Officers of 
inspection. 
39. Complaints.– (1) Any interested person, including a Provincial Government, 
may file a written complaint with the Authority against a licensee for contravention 
of any provision of this Act or any order, rule, regulation, licence or instruction made 
or issued there under. 
(2) The Authority shall, on receipt of a complaint, before taking any action 
thereon, give notice  to the licensee or any other person against whom such 
complaint has been made to show cause and provide such licensee or such oth er 
person an opportunity of being heard. 
40. Enforcement of orders of the Authority.– The Authority's determinations 
on decisions by tribunals set up under section 11 of this Act shall be deemed to be 
decrees of a civil court under the Code of Civil Procedure, 1908 (Act V of 1908). 
41. Sum payable to the Authority to be recoverable as la nd revenue .– All 
sums payable to the Authority in accordance with the provisions of this Act and the 
rules shall be recoverable as arrears of land revenue. 
42. Reports of the Authority.– (1) The Authority shall submit, to the Council of 
Common Interests  and to the Federal Government, at the end of every financial 
year, but before the last day of September of that year– 
(a) a report on the conduct of Its affairs for that year including anticipated 
developments for the following year; and 
(b) report on the state of electric power services in the country identifying 
the ownership, operation,  management, efficiency and control of 
electric power facilities, amount of trans mission and generation 
capacity, present and future demand of electricity, cost of electric 
power services and other matters relating to electric power services. 
43. Inspection by public.– (1) The Authority shall maintain public files that 
shall be kept open in convenient form for public inspection and examination 
during reasonable business hours. 
(2) Subject to procedures and standards for confidentiality, the 
Authority's public files shall inclu de all rele vant docu ments to be maintained and 
indexed as the Authority deems fit. 
(3) The Provincial Governments shall keep open in convenient form for 
public inspection and examination during reasonable business hours all complaints, 
responses and decisions relating to the Provincial inspection offices. 
44. Information.– The Authority may call for any information, required by it for 
carrying out  the purposes of this Act from any person involved directly or 
indirectly, in the provision of electric  power services or any matter incidental or 
consequential thereto. Any such person shall be lia ble to provide the prescribed 
information called by the Authority, failing which he shall be liable to a fine or other 
penalty as prescribed from time to time. 
45. Relationship to other laws.– The provisions of this Act, rules and 
regulations made and licenses issued there under shall have effect notwithstanding 
anything to the contrary contained in any other law, rule or regulation, for the time 
being in force and any such law, rule or regulation shall, to the  extent of any 
inconsistency, cease to have any effect from the date this Act comes into force and 
the Authority shall, subject to the provisions of this Act, be exclusively empowered 
to determine rates, charges and other ter ms and conditions for electric power 
services: 
Provided that  nothing in this Act shall affect the jurisdiction, powers or 
determinations of the Corporate Law Authority or the Monopoly Control Authority. 
46. Rules.– (1) The Authority may, with the approval of the Federal Government, 
by notification in the official Gazette, make rules to carry out the purposes of this Act. 
(2) Without prejudice to the generality of the foregoing powers, such 
rules may provide for:– 
(a) procedure for seeking no minations of members from  the Provincial 
Governments; 
(b) the form and manner of applications to be made for a licence for 
generation, transmission or distribution facilities; 
(c) the fees and docu ments to be acco mpanied with the applications for 
licenses; 
(d) determination of rates, fees, charges and  other terms and conditions of 
licenses; 
(e) publication of rates and charges of electricity consumption, procedure 
for metering, billing and collection of electric power charges by the 
licensees; 
(f) procedure for resolving disputes amongst the licensees and consumers 
and the licensees; 
(g) procedure for submission of various reports to the Council of Common 
Interests or to the Federal Government and the manner of preparation 
of such reports; 
(h) procedure for inquiry and investigation into the affairs of an applicant 
for a licence and for any contravention of any provision of this Act; 
(i) the manner and procedure of show cause notices; 
(j) safe, effective and least environ mentally har mful supply of electric 
power; 
(k) performance and industrial standards for supply of electric power; 
(l) standards for investment programmes or power acquisition 
programmes for transmission and distribution companies; 
(m) the seeking of information, and the fines or penalties for failure to 
furnish information; and 
(n) any other matter incidental or consequenti al to t he i mplementation of  
this Act. 
47. Regulations.– (1) The Authority may, by notification in the official 
Gazette, make regulations, not inconsistent with the provisions of this Act or the 
rules, for the carrying out of its functions under this Act. 
(2) Without prejudice to the foregoing powers, such regulations may 
provide for appointment of its officers, members of staff and such other persons and 
the terms and conditions of their service.