Sindh announces independent power regulator to slash electricity rates

Friday, August 29, 2025
2 mins read
Independent Power Regulator transmission lines

Sindh announces independent power regulator to slash electricity rates, aiming to provide affordable electricity to Karachi’s residents and industries. The Sindh Assembly has approved the establishment of the Sindh Electric Power Regulatory Authority (Sepra), which will operate independently from the National Electric Power Regulatory Authority (Nepra). Energy Minister Nasir Hussain Shah emphasized that the provincial government will generate and distribute electricity through the Sindh Transmission and Dispatch Company (STDC), setting rates lower than those of K-Electric. This move is expected to reduce the financial burden on consumers and enhance the efficiency of the power sector in the region.

In a significant development, the Sindh government has taken a bold step to address the escalating electricity costs by establishing its own regulatory authority. The Sindh Electric Power Regulatory Authority (Sepra) is set to oversee the generation and distribution of electricity within the province, independent of the federal regulatory body, Nepra. This initiative aims to empower the provincial government to set electricity rates that are more aligned with the local economic conditions and consumer needs.

Discussion in the Sindh Assembly About the Independent Power Regulator

Energy Minister Nasir Hussain Shah highlighted that the Sindh Assembly has constitutionally approved the formation of Sepra. He further stated that efforts are underway to ensure the first power supply is made to the K-IV Grid via Sepra. The electricity provided under this new framework is expected to be significantly cheaper than the rates charged by K-Electric, Karachi’s sole electricity supplier.

The Sindh Transmission and Dispatch Company (STDC) will play a pivotal role in this initiative by generating and distributing electricity within the province. By taking control of the power supply chain, the Sindh government aims to reduce inefficiencies and ensure a more reliable and cost-effective electricity service for its residents.

This move comes at a time when the federal government has been making efforts to reduce electricity tariffs across the country. Earlier this year, Nepra approved a reduction of Rs1.89 per unit in electricity prices under the quarterly tariff adjustment for the period April to June 2025. However, the Sindh government’s decision to establish Sepra indicates a proactive approach to addressing the unique energy challenges faced by the province.

The establishment of Sepra is expected to bring about several benefits for the residents and industries of Karachi. With the ability to set independent electricity rates, the provincial government can tailor tariffs to better suit the local economic conditions. This could lead to reduced electricity bills for consumers and potentially stimulate economic growth by making energy costs more predictable and manageable for businesses.

Moreover, the creation of Sepra is anticipated to enhance the accountability and transparency of the electricity sector in Sindh after independent power regulator. By having a dedicated provincial authority, the Sindh government can more effectively address consumer grievances, monitor service quality, and implement policies that promote sustainable energy practices.

In conclusion, the establishment of the Sindh Electric Power Regulatory Authority marks a significant step towards achieving affordable and reliable electricity for the residents and industries of Karachi, following the establishment of an independent power regulator. By taking control of the power supply and setting independent electricity rates, the Sindh government aims to create a more efficient and consumer-friendly energy sector.

Published in SouthAsianDesk, August 13th,2025

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