ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has proposed amendments to its Prosumer Regulations, 2026, aiming to simplify the approval process for small-scale distributed generation consumers.
According to a draft notification issued for public consultation, the regulator intends to introduce key changes under Section 47 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
The proposed amendments seek public input within 30 days before finalisation.
A major relief has been proposed for small prosumers. Under the revised framework, consumers with distributed generation facilities of up to 25 kilowatts (kW) will no longer require formal concurrence from NEPRA. Instead, the concerned power distribution company (DISCO) will be authorised to grant approval directly.
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This move is expected to streamline the process and encourage the adoption of rooftop solar and other small-scale renewable energy systems.
The draft also introduces the term “approval” alongside “concurrence” in multiple provisions, reflecting a shift toward decentralised decision-making and reducing procedural bottlenecks.
In addition, NEPRA has proposed minor amendments to the Distributed Generation Interconnection Agreement, making certain requirements conditional where applicable.
The regulator stated that these changes are intended to facilitate ease of doing business, promote distributed generation, and support Pakistan’s transition toward cleaner energy solutions.
Stakeholders, including industry players and consumers, have been invited to submit their comments to the Registrar NEPRA within the stipulated period.
Power Division had previously alerted NEPRA about the adverse effects of this decision and requested that it be aligned with the old regulations.
Under the previous 2015 regulations, distributed generation facilities of 25 kilowatts or below did not require a license from NEPRA. Applications were processed directly by Distribution Companies (DISCOs) without any fee, serving as a major fiscal incentive for residential users. However, the new Prosumer Regulations centralize approval authority with NEPRA and impose application fees even on these small facilities.
The Power Division noted that the Private Power and Infrastructure Board (PPIB) had flagged the regulatory shift and requested NEPRA to maintain consistency with the earlier approvals regime for systems of 25 kW or below.
Additionally, during public hearings, the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd formally objected to the changes, arguing that removing approval authority from DISCOs creates unnecessary bureaucratic hurdles.
Copyright Business Recorder, 2026
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