After PM’s orders, NEPRA grants 30-day protection to existing net-metering consumers

ISLAMABAD: In a major relief for existing solar net-metering consumers, the National Electric Power Regulatory Authority (NEPRA) has granted a 30-day protection window by issuing a draft amendment to the Prosumer Regulations 2026 after Prime Minister Shehbaz Sharif ordered an urgent review following widespread public backlash.

According to industry sources, the Power Division approached NEPRA on February 13, 2026, seeking a re-examination of the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026, which were notified on February 9, 2026. The request came after public concern erupted on various forums, with existing solar consumers fearing that the newly notified framework could disturb or undermine the financial benefits and contractual protections available under the repealed net-metering regulations.

Sources said the matter reached NEPRA after Prime Minister Shehbaz Sharif directed the Power Division to immediately take up the issue with the regulator, stressing that the government must ensure maximum protection for existing solar consumers already operating under net-metering agreements.

The Prime Minister’s directions reportedly emphasized two key concerns: first, that all possible protections for existing net-metering consumers must be ensured, and second, that a comprehensive mechanism must be developed so that the financial burden of approximately 466,000 solar consumers is not transferred onto over 38 million national grid electricity consumers.

Following these directions, the Power Division formally asked NEPRA to immediately revisit the Prosumer Regulations 2026 and proposed that the interests of consumers holding valid net-metering licences as of February 9, 2026, should remain protected, particularly regarding the benefits they were entitled to under the repealed net-metering regulations.

However, the Power Division made it clear that for new consumers, the framework, rates, and mechanisms introduced under the Prosumer Regulations 2026 would remain applicable.

In its communication, the Power Division further requested that until a final decision is taken on the review, distribution companies (DISCOs) should be allowed to continue operating under the repealed net-metering mechanism for those consumers who already held valid licences as of February 9, 2026.

Acting on this request, NEPRA has now issued a draft amendment for publication under Section 47(3) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997), and has invited public opinion within 30 days.

According to the draft notification, NEPRA intends to amend Regulation 21 of the Prosumer Regulations 2026 by substituting sub-regulation (2) along with its proviso.

The proposed amendment states that notwithstanding the repeal effected by the Prosumer Regulations 2026, nothing shall affect approvals granted, licences or concurrences issued, and agreements executed under the repealed regulations before the commencement of the new regulations.

It further stated that any distributed generator having a valid agreement executed under the repealed regulations shall continue to be billed in accordance with the rate and mechanism provided in the repealed regulations till the expiry of the term of the agreement executed under those repealed regulations.

This means that existing prosumers who already hold valid net-metering agreements would remain protected from being shifted onto the new mechanism introduced under the Prosumer Regulations 2026, at least until their agreements expire.

The draft amendment also carries a significant proviso stating that the sub-regulation shall be deemed to have taken effect on February 9, 2026 and shall always be deemed to have had effect accordingly, indicating that NEPRA is attempting to ensure legal continuity and avoid any ambiguity regarding the applicability of the earlier mechanism for existing consumers.

 Industry observers believed that this clause is aimed at addressing the fears of existing solar consumers who believed the new regulations could be applied retrospectively, resulting in abrupt changes in their billing structure and economic returns.

In the public notice, NEPRA stated that the draft amendment is being published to elicit public opinion, and stakeholders have been given 30 days to submit their comments.

 According to the published notice, comments may be sent to the Registrar NEPRA at NEPRA Tower, Islamabad.

Power sector sources said that the development has reflected the seriousness of the government’s intervention in the matter, as solar net-metering has become a politically and economically sensitive issue due to its rapidly growing consumer base and its impact on the national grid.

They said the government appears to be attempting a delicate balancing act: on one hand, protecting the rights and contracts of existing net-metering consumers who invested heavily in solar systems under earlier incentives, and on the other hand, ensuring that the rising number of prosumers does not create an unfair cost burden for conventional grid consumers.

The draft amendment is expected to trigger strong debate within the power sector over the future of net-metering and prosumer policies, particularly as Pakistan continues to witness rapid expansion in rooftop solar installations amid high electricity tariffs and rising consumer demand for alternative energy solutions.

NEPRA’s final decision on the matter will likely depend on stakeholder input received during the 30-day consultation period, after which the regulator may issue a final amended notification determining the future treatment of existing net-metering contracts under the Prosumer Regulations 2026.