NEPRA prosumer regulation triggers alarm over net metering changes, investor confidence

Lawmakers, policy analysts and industry representatives have warned that NEPRA’s newly approved Prosumer Regulation 2026 could disrupt consumer expectations, weaken regulatory predictability and slow the adoption of rooftop solar systems in Pakistan.

The concerns were raised during a briefing convened by the Parliamentary Forum on Energy and Economy to examine the economic, legal and structural implications of the revised net metering framework, according to a press release.

Parliamentarians at the session stressed that regulatory changes with far-reaching financial and social implications fall within Parliament’s constitutional oversight mandate, calling for more structured engagement between regulators and legislative forums before major policy shifts are approved.

Dr Nafisa Shah, Co-Convenor of the Forum, said the Prosumer Regulation 2026 should be viewed as a long-term policy intervention rather than a routine tariff adjustment, warning that it could affect investor confidence, consumer protection and Pakistan’s clean energy transition. She called for greater transparency in impact assessments and continued parliamentary scrutiny of energy reforms.

Industry representatives cautioned that the revised framework could materially alter rooftop solar economics. Waqas Moosa, Chairman of the Pakistan Solar Association, said the changes may extend payback periods for household solar systems and slow future adoption, adding that weaker incentives could push consumers toward battery storage and partial disengagement from the national grid, increasing financial and operational pressures on the power sector.

Policy analysts said households that invested under the previous net metering regime had legitimate expectations of policy continuity. Manzoor Ahmed Ali Zai of the Policy Research Institute for Equitable Development warned that abrupt policy shifts could disproportionately affect middle-income consumers who adopted solar in good faith.

NEPRA official Imtiaz Hussain Baloch, Director General Licensing, said the revised regulation seeks to address revenue recovery issues, cost allocation challenges and grid sustainability concerns amid rising penetration of distributed solar generation.

Sher Ali Arbab, Co-Convenor of the Forum, said the rapid expansion of rooftop solar in recent years was driven by escalating electricity tariffs and persistent grid unreliability, emphasising that regulatory stability is critical to sustaining public confidence in clean energy investments.

Participants also criticised the pace of the regulation’s approval, arguing that reforms affecting thousands of consumers require broader consultation, transparent impact evaluations and adequate time for public scrutiny.

The Parliamentary Forum on Energy and Economy said it would continue promoting evidence-based dialogue and legislative oversight on key energy and economic policy matters.