The Punjab cabinet has approved the Electricity Duty Rules 2026 in a major policy decision. The new framework introduces taxation on private power generation systems across the province. It mainly targets large generators and solar installations above 500 kVA. Domestic consumers will remain fully exempt from this duty. The move is aimed at improving regulation and increasing government revenue.
Under the new framework, Punjab authorities will apply electricity duty on industrial and commercial self-generation units. The charge has been set at 4 paisa per unit of electricity generated for internal use. Officials say this step will help improve monitoring of private energy production. It is also expected to create a more structured taxation system for large energy users.
According to official estimates, the new system may generate around Rs300 million in annual revenue. Around 1,177 industrial and commercial facilities across Punjab will fall under this new taxation structure. Authorities believe this will strengthen financial oversight in the energy sector. It will also ensure better compliance from private power producers.
The Electricity Duty Rules 2026 also expand enforcement powers for regulatory officers. Inspectors in Punjab will now have authority to inspect private power plants and verify records. They can seal non-compliant installations and recover outstanding dues under applicable revenue laws. All eligible private power systems must now be formally registered with authorities.
Industrial and commercial users will also be required to install separate energy meters. They must maintain monthly operational records and log books for transparency. Failure to comply with the new rules may result in penalties. These penalties include surcharges between 10 to 15 percent, financial fines, and possible suspension of electricity generation activities.
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The updated policy replaces the Electricity Duty Rules 2012 with a more modern framework. The government says the new system strengthens oversight of private electricity generation in Punjab while keeping domestic consumers protected. Officials added that the reform balances revenue generation needs with stronger regulatory control across the energy sector.
