Licencing rules amended: Nepra introduces new category of ‘on-site supplier’

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has notified amendments to its Licencing (Electric Power Supplier) Regulations, 2022, introducing a new category of on-site supplier and revising the framework governing electricity supply.

The amendments, issued through SRO 883(I)/2026 under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, expand the definition of “electric power supplier” to include competitive suppliers, on-site suppliers, and suppliers of last resort. Under the revised rules, an “on-site supplier” has been defined as a licensed entity authorized to supply electricity directly to its bulk power consumers without availing open access. The move is seen as part of broader efforts to facilitate direct power supply arrangements and enhance flexibility in the power market.

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Nepra has also made it mandatory for generation companies to obtain a supply licence before providing electricity to any consumer, including bulk users, even if they already hold a generation licence.

A newly inserted regulation (4A) outlines the operational framework for on-site suppliers. It requires such entities to obtain a licence from the Authority and limits their supply strictly to bulk power consumers directly connected to their generation facilities.

The regulations further stipulate that tariffs for on-site supply will be mutually agreed between the supplier and the consumer, and such suppliers will not be allowed to participate in the Competitive Trading Bilateral Contract Market (CTBCM).

However, bulk consumers connected to on-site suppliers may retain connections with distribution companies to receive backup power from a supplier of last resort or a competitive supplier. In such cases, consumers will be liable to pay fixed or backup charges as determined by Nepra.

Copyright Business Recorder, 2026