KARACHI: The Pakistan Business Forum (PBF) has called for the complete restoration of the Nepra Prosumer Regulation 2026, emphasising that recent notifications providing relief to the industry are welcome, but questioning why the adjustment burden is being passed on to ordinary consumers.
In a letter to chairman Nepra, President PBF Khawaja Mehboob ur Rehman said instead of improving governance within Discos, ordinary consumers are being penalised,” he stated.
“Every consumer, whether new or existing, must receive the full benefits of the unit-for-unit system. There should be no discrimination based on contract status or tenure.”
The PBF highlighted concerns over discouraging new consumers or those whose contracts are nearing expiration.
“The real issue lies with capacity payments and irregularities in billing, not with the solar energy system itself,” the Forum added.
“The rollback of net metering sends a deeply damaging message that even self-reliance will be penalised,” the Forum said, warning that the decision could have long-term consequences for the energy sector and public confidence in regulatory stability.
The PBF cautioned that the revised prosumer framework is likely to slow Pakistan’s energy transition, undermine climate commitments, and discourage clean energy generation. Retrospective policy changes, the Forum said, erode regulatory credibility and weaken investor confidence at a time when both domestic and foreign investment are urgently needed.
The PBF further observed that the policy shift appears to shield inefficiencies within an ageing and loss-ridden power distribution system. Instead of addressing persistent Disco mismanagement, capacity payment distortions, and overdue structural reforms — including privatisation or provincial devolution—the burden is being shifted onto productive, tax-compliant consumers.
Highlighting the fiscal dimension of the decision, the PBF noted that electricity tariffs have increasingly become a major source of indirect tax collection through surcharges, levies, and embedded taxes. As consumers generate their own electricity, they reduce both grid demand and these fiscal inflows.
The Forum stressed that this should not translate into a policy disincentive for clean energy adoption, particularly when electricity tariffs in Pakistan already rank among the highest in the region.
As frequent tariff revisions and retrospective regulatory changes, the PBF warned, risk undermining long-term energy security by increasing uncertainty and turning investment in the power sector into a high-risk venture.
Pakistan has imported nearly 50 gigawatts of solar panels and related equipment up to September 2025, yet no clear strategy has been articulated for managing this installed and incoming capacity.
If excess generation is a concern, the Forum suggested that it could be productively utilised through energy storage solutions, AI data centres, or industrial clusters, rather than discouraging clean energy production.
At a time when the salaried class has borne an additional Rs 315 billion in taxes during the current fiscal year and corporate taxation remains among the highest in the region, the PBF questioned the continued reliance on expensive and polluting energy sources, as well as the significant foreign exchange outflows required for furnace oil and LNG imports.
The Forum strongly urged the Nepra to reconsider the revised prosumer regulations, engage in meaningful stakeholder consultations, and adopt a forward-looking energy policy because blaming net metering for a Rs 550 billion “burden” is a distraction from the real crisis; crippling capacity payments, inefficiencies, and decades of mismanagement in the power sector. Punishing solar investors who reduce fuel imports and grid pressure won’t fix the system; it will only deepen the problem.
Copyright Business Recorder, 2026
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