Islamabad, January 11, 2026 — Senior lawmakers have strongly criticized Pakistan’s power regulator after revelations that consumers are being charged Rs2.2 trillion for electricity that was neither generated nor consumed, largely due to capacity payments to power producers.
The sharp criticism was voiced during a meeting of the Senate Standing Committee on the Cabinet Secretariat held at the Sindh Secretariat on Saturday, where officials of the National Electric Power Regulatory Authority (Nepra) were questioned over electricity tariffs, capacity charges and the performance of Independent Power Producers (IPPs).
Senator Saleem Mandviwala said Nepra, established nearly 28 years ago to protect consumers, had instead become an advocate for power producers. Referring to capacity payments that remain payable even during low demand in winter, he said consumers were being unfairly burdened. “If low-cost electricity is still not available after 28 years, the system has clearly failed,” he remarked.
Mandviwala urged Nepra to move beyond technical explanations and clarify how affordable electricity would be delivered to the public, questioning the regulator’s role and per-unit charges applied to consumers.
Backing the criticism, Senator Muhammad Abdul Qadir said government claims of declining electricity prices had failed to translate into real relief. He warned that high energy costs were hurting exports and questioned why applications for 1,000MW of new power connections remained stalled. He also accused IPPs of holding the country “hostage” without facing forensic scrutiny.
Committee chair Senator Rana Mahmood-ul-Hassan said there was consensus on the need for a forensic audit of IPPs, including existing and upcoming projects. Lawmakers demanded audits covering feasibility, land valuation, fuel usage, machinery output and annual technical inspections.
Responding to concerns, Nepra officials explained that electricity tariffs comprise capacity and energy charges, with capacity payments unrelated to actual consumption and impossible to reduce. They argued that increasing electricity sales was the only way to dilute the burden.
The explanation was rejected by lawmakers and industry representatives. Business leader Zubair Motiwala said fuel adjustment charges and circular debt surcharges were negating any tariff relief. He warned that with only 28,000MW operational out of 42,000MW capacity, industries were increasingly shifting to alternative energy sources.
Sindh lawmakers also raised concerns over prolonged load-shedding, water shortages and penalties on bill-paying consumers, calling for stronger regulation, public hearings and structural reforms in the power distribution system.
Senator Abdul Qadir warned that unchecked capacity payments could surge to Rs5 trillion annually, consuming most power sector revenues and posing long-term risks to consumers and the economy.