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Home Energy

Net metering facility to continue for existing owners till expiry of contracts  

by AMG
February 16, 2026
in Energy
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NEPRA okays new financing mechanism for 59 IPPs of different technologies
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ISLAMABAD:  National Electric Power Regulatory Authority (NEPRA) on Monday has granted protection to existing prosumers till the expiry of seven years contracts through amendments to the notified Prosumer Regulations 2026.

 The decision was taken at a meeting of NEPRA Authority in the light of Power Division letter seeking a re-examination of the Prosumer Regulations 2026 in light of directions issued by Prime Minister Shehbaz Sharif.

According to a senior Power Division official, the matter was referred to NEPRA after widespread public concern surfaced across various forums following the notification of the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026 on February 9, 2026.

The Prime Minister directed the Power Division to take up the issue with NEPRA to safeguard the existing contracts of current solar consumers. Specifically, the directions include: (i) ensuring that all possible protections for existing consumers are guaranteed; and (ii) formulating a comprehensive mechanism to prevent any undue transfer of the financial burden of approximately 466,000 solar consumers onto more than 38 million national grid consumers.

In compliance with these instructions, the Power Division formally requested NEPRA to immediately revisit the Prosumer Regulations.

In its communication, the Power Division proposed that the interests of consumers holding valid net-metering licences as of February 9, 2026, be protected — particularly with respect to benefits available under the repealed net-metering regulations.

However, for new consumers, the framework and mechanism prescribed under the Prosumer Regulations 2026 would remain applicable.

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that, until a final decision is taken, distribution companies (DISCOs) be allowed to continue operating under the repealed net-metering mechanism for consumers who held valid licences as of February 9, 2026.

In this regard, NEPRA has issued a draft amendment to the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026.

In exercise of the powers conferred under Section 47 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (Act No. XL of 1997), NEPRA has proposed amendments to the Prosumer Regulations and published the notification to elicit public opinion.

According to the proposed S.R.O., Regulation 21(2), along with its proviso, shall be substituted as follows:

“Notwithstanding the repeal effected by these regulations, nothing shall affect approvals granted, licences or concurrences issued and agreements executed under the repealed regulations before the commencement of these regulations, and any distributed generator having a valid agreement executed under the repealed regulations shall 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 the repealed regulations:

Provided that this sub-regulation shall be deemed to have taken effect on 9th February, 2026 and shall always be deemed to have had effect accordingly.”

NEPRA has sought public comments on the proposed draft within 30 days.

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