Senator Muhammad Aurangzeb chaired the second meeting of the Steering Committee on Power Sector Regulatory Regime on Monday, where the committee reviewed progress and advance reforms for the power sector. The committee examined changes within the power sector, specifically addressing growing solarisation and shifts in consumer demand patterns.
The evolving power sector landscape necessitates a regulatory structure that supports efficiency, investment, consumer interests, and private-sector participation. Challenges such as legacy capacity obligations, shifting grid-demand patterns, and investment limitations were discussed by the committee.
The Finance Minister stressed the need to develop a market structure featuring clearer incentives for service quality and efficiency. Separating the network and supply functions was also a topic of discussion among the committee members.
A predictable and transparent regulatory regime, encompassing appropriate risk allocation and tariff methodologies, is required for the committee. Improving financial sustainability and reducing inefficiencies remain key objectives for the reform process.
The meeting also considered the potential benefits derived from the accelerated deployment of battery energy storage systems (BESS). Any extra commercial operations undertaken by distribution companies must operate within a defined regulatory framework.
The emerging regulatory structure must account for technological advancements, including distributed generation, storage, and electric mobility. The Finance Minister directed the Technical Working Group to conduct a structured and consultative process.
The reform process must be iterative, evidence-based, and aligned with creating a competitive, efficient, and financially sound power sector. Federal Minister for Power Sardar Awais Ahmad Khan Leghari attended the meeting.
