ISLAMABAD: Power Planning and Monitoring Company (PPMC), the policy, strategic and technical arm of the federal government in the power sector, has approached the National Electric Power Regulatory Authority (Nepra) for registration as a provider of electric power services, seeking formal regulatory recognition of its expanding role in national electricity planning, sectoral monitoring, tariff analysis and implementation of power-sector reforms.
According to sources in PPMC, in an application dated October 7, 2026, submitted to the Registrar Nepra, PPMC Managing Director Abid Latif Lodhi requested registration under Section 25A of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, read with the Registration (Manner and Conditions for Entities providing Electric Power Services) Rules, 2023, and Nepra Licensing (Registration) Regulations, 2022.
The application follows a federal cabinet decision dated September 25, 2026, which directed PPMC to submit an application for registration or a licence with Nepra within two months.
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The cabinet also directed that the existing government-approved PPMC fee structure should continue, subject to due diligence by the regulator, and stipulated that registration should be granted within two months after completion of the due process.
PPMC has maintained in its application that the planning, monitoring, regulatory-support and technical services it provides across the electricity value chain fall within the definition of electric power services covered by the applicable legal and regulatory framework.
The company has requested Nepra to consider its application and grant registration in accordance with the federal government’s decision. The documents do not establish that Nepra has already approved the application.
From PEPCO to policy and technical arm
PPMC is a wholly government-owned private limited company incorporated under the Companies Act, 2017. It was established in 1998 as the Pakistan Electric Power Company Limited (PEPCO) to implement the reforms programme aimed at privatising the power wing of the Water and Power Development Authority (WAPDA).
At that time, its primary responsibility was to facilitate the transition from WAPDA’s centralised control of the power wing towards autonomous generation, transmission and distribution companies.
The company’s role subsequently evolved from its original reform-related responsibilities into policy support, strategic planning, performance monitoring and technical coordination for the power sector.
Under the National Electricity Policy 2021, approved by the Council of Common Interests, PPMC was designated on September 20, 2021, to monitor implementation of the policy and the National Electricity Plan, particularly the performance of the distribution sector.
The federal cabinet, through a decision dated October 27, 2021, directed the restructuring of PPMC as the federal government’s policy and technical arm for the power sector. The entity’s name was changed from PEPCO to Power Planning and Monitoring Company.
The cabinet decision assigned PPMC responsibilities including overseeing implementation of the government’s power-sector vision, supporting the Ministry of Energy (Power Division) in policy formulation and coordination, conducting research and analysis, providing technical support for uniform distribution-sector design and standards, and monitoring key performance indicators of generation, transmission and distribution companies.
PPMC’s designated role was subsequently reinforced through the National Electricity Plan 2023-27. A Ministry of Energy notification dated October 30, 2023, approved PPMC as the designated entity for implementation of the plan’s priority areas.
According to the application, PPMC is responsible for central monitoring and coordination of the National Electricity Plan, including assessing implementation progress and supporting the government and relevant sector entities in achieving the plan’s objectives.
Cabinet directs continuation of PPMC fee
A key aspect of the application concerns the regulatory treatment of PPMC’s functions and the fee charged to finance its operations.
The company has referred to the Ministry of Energy’s SRO 1358(I)/2025, dated July 29, 2025, through which the government established the requisite framework for PPMC’s designation and fee collection, with directions covering stakeholders including distribution companies, Central Power Purchasing Agency-Guarantee (CPPA-G) and Nepra.
The application states that the federal cabinet, in its decision dated September 25, 2026, directed that the PPMC fee would continue to be charged under the existing government-approved structure. Nepra would continue to allow the fee after conducting due diligence.
The decision also required PPMC to apply for registration or a licence within two months, with Nepra expected to process the application within two months after the required due process.
Consequently, the relevant provision of Part B of the National Electricity Plan was amended, according to PPMC’s submission, to provide for continuation of the fee under SRO 1358(I)/2025, as amended or replaced by the Power Division from time to time, subject to regulatory allowance.
PPMC has submitted that the fee is linked to the functions assigned to it under the National Electricity Plan and the federal government’s decisions. The application, however, does not itself constitute Nepra’s determination on the admissibility, final treatment or amount of the fee.
The registration process is therefore intended to bring PPMC’s electricity-related services within the applicable regulatory framework while enabling Nepra to examine the company’s application and supporting documentation.
Broad mandate covering planning, tariffs and circular debt
PPMC has outlined a wide range of responsibilities in its application, covering policy development, integrated energy planning, economic analysis, research, performance monitoring, technical standards and support for sectoral restructuring.
Under policy and strategic planning, the company proposes to assist the federal government and Power Division in developing, implementing and periodically reviewing national energy policies, strategic plans and sub-sectoral guidelines.
This work includes examining whether sectoral policies, institutional responsibilities and regulatory frameworks are consistent with one another; identifying policy and legislative gaps; and preparing evidence-based assessments and recommendations for the government and Nepra.
The company also intends to undertake integrated energy planning and modelling, supported by technical, economic, social and environmental assessments of proposed policies and interventions.
Its proposed functions include developing a system-value framework to assess different proposals and incentive schemes for electricity consumers, as well as preparing strategic risk assessments to identify emerging and existing risks and recommend mitigation measures.
PPMC has also included research, development and indigenisation among its core responsibilities. It proposes to establish a central research and development secretariat, administer a five-year research and development programme, manage a central research platform and support preparation of a Power Sector Indigenisation Plan.
The company would also work with universities, research institutions and training organisations to assess the electricity sector’s future skills requirements.
In national electricity planning, PPMC proposes to assist the government, Power Division and relevant sector entities in preparing and updating sectoral plans. This includes support for periodic revision of the National Electricity Plan and development of an Integrated Energy Plan in coordination with stakeholders and regulators.
The application also identifies distributed energy resources, cross-border electricity trade, electricity-market development and expansion of electricity access as areas requiring policy and technical support.
PPMC has proposed establishing a Central Electrification Registry and preparing an annual National Electricity Access Report as part of its responsibilities.
Another major component of its mandate is tariff design, subsidy analysis and circular debt management.
The company intends to provide analytical support to the federal government, Power Division and Nepra on tariff projections, subsidy reforms and circular debt management, including assessments of the financial implications of proposed measures and their potential effects on electricity consumers.
Its proposed work also includes periodically evaluating the continued application of uniform electricity tariffs.
The application describes these responsibilities as analytical and advisory functions intended to support government and regulatory decision-making.
PPMC has also undertaken to monitor performance contracts and key performance indicators of power-sector entities, prepare consolidated sector reports, track implementation of the National Electricity Plan and reform programmes, and monitor donor-funded and Public Sector Development Programme projects.
The company has identified audit compliance, vigilance and complaints redress, where required, as additional areas of responsibility.
Technical standards and support for distribution companies
PPMC has identified technical services as another major area of its proposed registered activities, particularly the development and maintenance of uniform standards and specifications for electricity distribution networks.
Under the proposed framework, the company would develop and maintain common distribution-network standards, inspect materials and equipment, and support consistent implementation through technical reviews and training.
It also intends to establish a central standards registry and introduce information-technology-based systems to improve the management of technical standards and inspection activities.
The application further assigns PPMC a supporting role in the restructuring and privatisation of power-sector entities, particularly distribution companies. It would provide analytical, technical and coordination assistance to the federal government, Power Division and relevant entities in preparing business plans, strategic roadmaps and model policies, building institutional capacity and monitoring the implementation of reforms.
In addition, PPMC proposes to assist in developing financing programmes and instruments for energy transition, energy efficiency and conservation. This would include support for donor engagement, green financing initiatives and public-private partnership proposals through analytical assessments and technical appraisals.
Coordination with the federal and provincial governments, Nepra and other power-sector entities has also been identified as a central responsibility.
Company cites workforce and institutional capacity
To support its registration request, PPMC has provided details of its organisational structure, human resources, governance arrangements and information technology infrastructure.
According to the application, the company has a sanctioned strength of 167 employees and is headed by a board of directors, supported by the managing director and specialist staff.
Its principal operational departments include Integrated Planning and Economic Analysis, Planning Support and Regulatory Affairs, Technical Services, Monitoring and Reporting, Corporate Services and Coordination, and IT Services and Support.
The application lists 28 staff members in Integrated Planning and Economic Analysis, 19 in Planning Support and Regulatory Affairs, and 35 in Technical Services. Corporate Services and Coordination has eight staff members, Monitoring and Reporting has seven, and IT Services has nine.
The company also has an internal audit function comprising three positions.
PPMC has reported a current working strength comprising one managing director, one company secretary, five chiefs, 14 team leads, 38 specialists and 52 assistant specialists. It has stated that the existing workforce is sufficient to perform its assigned functions, while recruitment would continue in phases according to requirements and the approved organisational structure.
The application also describes the company’s digital systems for financial management, tariff analysis, electricity planning, performance monitoring, technical inspections and corporate administration.
These include enterprise resource planning systems for financial and administrative functions, business-intelligence tools for tariff and demand analysis, a Monitoring and Reporting Portal for distribution-company data, and an implementation-tracking portal for the National Electricity Plan.
PPMC has also referred to the National Electrification Portal for geographic information system-based planning and existing digital platforms for research and development.
Further improvements under consideration include a centralised data lake, advanced analytics and artificial intelligence tools for integrated energy planning, automated management of technical standards, expanded workflow automation and a decision-support system.
The company has stated that these systems would strengthen data-based analysis, coordination and monitoring across the power sector.
Board structure and oversight
PPMC’s application lists an eight-member board of directors comprising a chairman, three independent directors, three ex-officio directors representing relevant government and power-sector institutions, and the managing director as an executive director.
The board is supported by four committees: Audit and Finance Committee, Human Resource and Legal Committee, Procurement Committee, and Strategy Committee.
According to the application, the Audit and Finance Committee oversees financial reporting, internal controls, risk management and audit. The Human Resource and Legal Committee advises on organisational structure, human resource strategy, performance management and legal matters.
The Procurement Committee is responsible for oversight of procurement policies, the annual procurement plan and compliance with applicable laws and company policies. The Strategy Committee oversees PPMC’s work under the National Electricity Policy, National Electricity Plan and other relevant sectoral frameworks.
The company states that the committees operate under written terms of reference and support the board’s oversight of its administrative, financial and strategic responsibilities.
Annual budget and funding arrangements
PPMC has also submitted details of its financial position and funding requirements as part of the registration application.
The application states that the board approved the company’s annual budget for FY2025-26 in line with SRO 1358(I)/2025, dated July 29, 2025. After accounting for other revenue streams identified in the application, the net amount to be recovered through the management fee was calculated at Rs418 million.
The stated operating expenditure includes salaries and benefits, rent, utilities, consultancy and legal advisory charges, communications and office supplies. Capital expenditure covers IT equipment and software, office equipment and renovation, and vehicles.
The company has also referred to expenditure on core planning, monitoring and analytical systems, maintenance of technical and IT infrastructure, procurement planning and research and development, including the Integrated Energy Plan secretariat and research and development fund.
PPMC has stated that its budget is reviewed and approved by the board on the recommendation of the Audit and Finance Committee. Its audited financial statements for the preceding three years have been attached to the application.
The company has identified three principal sources of funding: design and standards and material inspection fees; the management fee under the National Electricity Plan and relevant cabinet decisions; and other income, primarily profit earned on bank balances.
The Rs418 million figure represents the net amount to be recovered through the management fee for FY2025-26, as stated in the application, rather than the company’s total expenditure or a confirmed fee determination by Nepra.
Application submitted with supporting documents
PPMC has stated that its application is accompanied by documents required under the applicable registration framework, including its incorporation certificate, memorandum and articles of association, evidence relating to the minimum capital requirement of Rs10 million, financial statements and budget information.
The submission also includes the company’s three-year strategic plan covering FY2026-27 to FY2028-29, along with governance information, management profiles, authorisations and supporting annexures.
The company has maintained that its strategic plan organises its activities around defined core functions, performance indicators and time-bound deliverables, subject to periodic review.
A pay order of Rs947,419 has also been submitted as the applicable registration fee, according to the application dated October 7, 2026.
In concluding its submission, PPMC has requested Nepra to grant registration under Section 25A of the Nepra Act, arguing that its planning, monitoring, analytical and technical activities fall within the scope of services covered by the legislation and the relevant registration rules.
The regulator’s consideration of the application will determine the outcome of the registration process. The documents provided do not contain a subsequent Nepra decision approving or rejecting the request.
Copyright Business Recorder, 2026