Prime Minister Shehbaz Sharif on Wednesday took notice of the National Electric Power Regulatory Authority’s (NEPRA) newly issued Prosumer Regulations 2026 and directed the Power Division to immediately file an appeal to safeguard the contracts of existing solar consumers.
Chairing a high-level meeting on the matter, the prime minister instructed officials to submit a review appeal before NEPRA to ensure maximum protection for current prosumers operating under net-metering arrangements, according to a statement issued by the Prime Minister’s Office (PMO).
The prime minister emphasized that the burden of 466,000 solar consumers should not be shifted onto 37.6 million domestic consumers who rely solely on electricity from the national grid.
“The Power Division should chalk out a comprehensive strategy in this regard,” the PMO quoted him as saying.
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The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Power Minister Sardar Owais Leghari, Economic Affairs Minister Ahad Cheema, Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, Adviser on Privatization Muhammad Ali and other senior officials.
The development comes amid criticism from lawmakers across party lines, including members of the ruling coalition partner PPP and the opposition PTI, over the regulator’s move.
Earlier, speaking in the Senate, Power Minister Owais Leghari defended NEPRA’s decision, stating that revising regulations in accordance with the law and Constitution falls within the regulator’s mandate. He maintained that the changes were intended to reduce the burden on consumers and clarified that the move did not constitute a policy shift.
Shift from Net-Metering to Net-Billing
Under the new Prosumer Regulations, existing registered prosumers will be shifted from net-metering to net-billing, with their exported electricity units credited for only one month instead of the current three-month adjustment period. Other contractual terms will remain in place until the expiry of their seven-year agreements.
Under net-billing, electricity generated by a solar consumer is purchased by the relevant distribution company (Disco) at the National Average Energy Purchase Price (NAEPP), currently around Rs10 per unit. Meanwhile, electricity consumed from the grid will be billed separately at rates ranging between Rs37 and Rs55 per unit, depending on the slab, excluding taxes and surcharges.
The regulations also restrict existing prosumers from installing solar capacity beyond their originally sanctioned load, effectively reducing allowable expansion by up to 50 percent.
For new prosumers, five-year contracts will be introduced. Exported electricity will be purchased at approximately Rs11 per unit, compared to Rs26 under previous arrangements. Surplus generation will be calculated separately rather than adjusted on a unit-for-unit basis, as was the case under net-metering.
Stakeholders and energy experts have expressed concern that the revised framework could slow citizen-led solar adoption. Both the government and the regulator have cited grid challenges and higher capacity payments, attributing them in part to prosumers operating beyond approved limits and unmetered solar installations.
However, observers note that the new regulations do not specifically address enforcement mechanisms for unauthorized installations.
In its statement, NEPRA said the updated framework introduces clearer procedures, stricter technical standards and a revised billing methodology aimed at better integrating distributed generation into the national grid while maintaining system stability.