Senior officials at the National Electric and Power Regulatory Authority (Nepra) have significantly raised their salaries, bypassing the required approval from the federal cabinet. This pay increase comes amid the ongoing issues in the power sector, which is grappling with substantial technical, commercial, and distribution losses.
Typically, the chairperson and members of regulatory bodies are entitled to a maximum Management Position (MP) scale I, with basic monthly pay ranging from Rs629,000 to Rs772,780. Additional perks, such as house rent allowances (Rs146,000 to Rs206,000) and utility allowances (Rs35,000), bring their total monthly compensation to between Rs800,000 and Rs1 million.
However, Nepra officials have approved an almost threefold increase in their salaries. A detailed questionnaire was sent to the regulatory body on February 10, requesting clarification on the salary changes and whether government approval was sought. Despite multiple follow-up reminders, no response was received.
The chairperson’s total gross salary has now risen to nearly Rs3.25 million, while other Nepra officials are earning around Rs2.95 million. The revised salary package includes a basic pay of Rs700,000 to Rs773,000, along with a new "regulatory allowance" of Rs631,000 to Rs700,000 per month, modeled after the judicial allowance for judges. Additionally, the officials have secured ad hoc relief for 2024, ranging from Rs587,000 to Rs650,000, as well as ad hoc relief for 2023 (Rs544,000 to Rs600,000).
Further perks include house rent allowances of Rs176,000 to Rs206,000 per month, ad hoc relief for 2022 (Rs105,150 to Rs116,000), and ad hoc relief for 2021 (Rs70,000 to Rs77,300). They also receive a car monetization allowance of Rs96,000 and utility allowances between Rs32,000 and Rs35,000.
As a result, their total salary package has soared to between Rs2.95 million and Rs3.25 million, surpassing the pay of superior court judges.
According to Section 8 of the Nepra Act, 1997, the salary, perks, and privileges for Nepra officials are to be determined by the Authority with the approval of the Federal Government. However, sources stated that these recent salary increases were made without such approval.
The Act also mentions that the remuneration and allowances of Nepra officials should reflect the "specialized nature of work" and ensure that salaries remain competitive with those in the private sector. Most Nepra chairpersons and members are retired bureaucrats, whose final salaries in government service ranged from Rs600,000 to Rs700,000.
After the recent pay hike, the total salaries of Nepra's chairperson and four members now exceed four times what they earned as government officials. Sources suggest that a Nepra official persuaded the chairperson and members that they had the authority to increase their salaries without government approval.
This pay increase has led to discrepancies among Nepra officials and those in other regulatory bodies, who continue to receive remuneration based on the MP scale as set by the Ministry of Finance. The only exception to this has been the chairperson of the Oil and Gas Regulatory Authority, who is paid under a special professional pay scale with an all-inclusive maximum salary between Rs1.5 million and Rs2 million.