ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the NEPRA Performance Standards (Distribution) Regulations, 2026 (PSDR 2026), terming the move a major reform in Pakistan’s power distribution sector that would help institutionalise reliable and quality electricity supply as an enforceable consumer right.
In a formal communication to the National Electric Power Regulatory Authority (NEPRA), FPCCI appreciated the Chairman, Members and professionals of the Authority for developing and notifying the 68-page regulatory framework, which replaces the Performance Standards (Distribution) Rules, 2005, after nearly two decades.
The FPCCI said the new regulations, developed following almost three years of efforts and stakeholder consultations represented one of the most substantive reforms in the power distribution sector in recent years.
The apex business body said uninterrupted and quality electricity supply was a fundamental requirement for industry, directly affecting production continuity, cost predictability and export competitiveness.
It particularly welcomed the introduction of Guaranteed Performance Standards, supported by mandatory consumer compensation and financial penalties in cases involving failures in outage restoration, meter replacement, voltage correction and provision of new connections.
According to the FPCCI, the provisions would transform previously discretionary service commitments into enforceable obligations for distribution companies (Discos).
The business community also welcomed the requirement for 30-minute advance warnings and real-time restoration updates in the case of unscheduled outages, as well as 48-hour prior notice for planned interruptions.
The FPCCI said these measures would help industrial consumers improve production planning, reduce unplanned downtime and minimise potential damage to sensitive industrial equipment caused by unannounced power interruptions and voltage fluctuations.
It also appreciated the new assessment methodology covering company, circle, division and sub-division levels, saying it would help identify localised inefficiencies that could remain hidden under company-wide performance averages.
The federation further welcomed the linkage of approved investment programmes with measurable outcomes, including improved reliability and reduced technical losses, rather than merely measuring expenditure.
The FPCCI said this provision addressed a longstanding concern of the business community regarding the effectiveness of capital expenditure by Discos.
It also appreciated the inclusion of power quality parameters, including voltage, frequency and power factor, besides cybersecurity provisions and measures relating to distributed energy resources and electric-vehicle charging infrastructure.
According to the FPCCI, these provisions demonstrated that the regulatory framework had been designed to address the evolving technical requirements of the electricity distribution system.
The federation also welcomed the establishment of Consumer Facilitation Applications and circle-level complaint centres, which, it said, were expected to improve grievance redressal and reduce turnaround time for industrial and other consumers.
The body noted that the timing of the reforms was particularly important given the ongoing privatisation process of Discos.
It said PSDR 2026 would provide prospective investors with clear, measurable and enforceable key performance indicators for benchmarking operational performance, thereby strengthening investor confidence and supporting fair valuation of distribution companies.
The federation recommended that NEPRA arrange sector-wide capacity-building and awareness sessions, both physically and online, for Discos, chambers of commerce and consumers to ensure effective understanding and implementation of the new regulations.
However, FPCCI emphasised that improvements in distribution reliability alone could not guarantee uninterrupted electricity supply to industry unless they were matched by robust performance and accountability across the upstream segments of the power sector.
It urged NEPRA to expedite the development and notification of corresponding Performance Standards for Investment, Generation and Transmission on the same measurable, enforceable and consumer-linked model adopted under PSDR 2026.
The trade body said this would ensure that reliability, accountability and investment-outcome linkages extended across the entire electricity supply chain.
The federation reaffirmed its support for implementation of PSDR 2026 and offered to facilitate industry feedback as the new standards were operationalised across the distribution companies.
Copyright Business Recorder, 2026
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