Existing net-metering contracts to remain valid until expiry

February 17, 2026 (MLN): The National Electric Power Regulatory Authority (Nepra) has moved to shield existing electricity prosumers by allowing them to retain the benefits of their current net-metering arrangements until the completion of their seven-year agreements with distribution companies, including K-Electric.

The step follows a formal communication from the PowerDivision seeking regulatory reconsideration.

The Power Division wrote to Nepra urging a review of the recently notified Prosumer Regulations 2026, acting on directions from PrimeMinister Shehbaz Sharif.

The prime minister instructed authorities to ensure that existing solar consumers’ contracts remain protected while also developing a broader framework to prevent any disproportionate financial burden from shifting onto conventional grid users.

The concern stems from the growing number of solar adopters estimated at roughly 466,000  compared with more than 38 million consumers reliant on the national grid.

In line with these directions, the Power Division asked the regulator to safeguard the interests of consumers who possessed valid net-metering licences as of February 9, 2026, particularly regarding incentives available under the previous regulatory regime.

At the same time, it proposed that new applicants be governed under the revised Prosumer Regulations framework.

The ministry further suggested that, pending a final decision, distribution companies should continue applying the earlier net-metering mechanism for licence holders whose approvals pre-date the new rules.

Responding to the request, Nepra has circulated draft amendments to the Prosumer Regulations 2026 and invited public feedback.

Exercising its authority under Section 47 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the regulator proposed revisions clarifying that approvals, licences, concurrences and agreements executed under the repealed regulations will remain valid and continue to be billed under the earlier rate structure until the expiry of their contractual terms.

The draft amendment also states that this protection will be treated as effective from February 9, 2026, and will be deemed to have always been in force from that date.

Meanwhile. the International Monetary Fund (IMF) is reviewing Pakistan’s proposed electricity tariff revisions, stressing that middle- and lower-income households should be protected, according to Reuters.

The discussions will assess alignment with the $7 billion Extended Fund Facility and potential impacts on inflation, amid ongoing challenges from the power sector’s circular debt.

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