Nepra flags Rs100bn Gepco plan amid privatization push

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has raised serious concerns over the Gujranwala Electric Power Company’s (Gepco) proposed Rs100 billion five-year investment plan, questioning its feasibility and potential burden on consumers.

Gepco’s investment plan comes as the government accelerates efforts to privatise three major power distribution companies — Gepco, Islamabad Electric Supply Company (Iesco) and Faisalabad Electric Supply Company (Fesco) — by the end of the year.

During a public hearing on Wednesday, chaired by Nepra chairman, the regulator scrutinised Gepco’s petition seeking approval for the hefty investment under its Distribution Integrated Investment Plan for FY2025-26 to FY2029-30. Nepra expressed skepticism over the utility’s financial stability, citing poor performance metrics, including rising transmission and distribution losses and weak recovery rates during fiscal year 2023-24.

With electricity demand on the decline, the regulator challenged the necessity of such a massive investment, warning that it could exacerbate financial pressures on consumers. Nepra also flagged delays in completing previously approved projects, raising doubts about Gepco’s execution capabilities.

Nepra directed Gepco’s leadership to reconsider its investment strategy, focusing on operational efficiency and financial discipline. “Consumers deserve tangible benefits, not additional financial strain,” emphasised Nepra.