The National Electric Power Regulatory Authority (NEPRA) has rolled out a revised framework governing the purchase and supply of electricity from net metering users by issuing the NEPRA Prosumer Regulations 2025. The new regulations aim to modernize net metering practices and bring greater clarity to pricing and grid management.
Under the updated mechanism, different tariffs will apply for electricity bought from net metering consumers and electricity supplied to them by power distribution companies. Power utilities will purchase surplus electricity generated by net metering users at the National Average Energy Purchase Price, while electricity provided to these consumers will be charged at the applicable consumer tariff. NEPRA has also officially introduced the term “prosumer” to describe consumers who both generate and consume electricity.
The regulations state that consumers will not be allowed to install generation capacity beyond their approved sanctioned load. NEPRA will retain the authority to review and reassess the generation capacity of net metering users whenever deemed necessary. To improve transparency, the rules require the installation of separate meters to record electricity imports and exports. Additionally, new net metering consumers will not be permitted to sell electricity to other consumers.
NEPRA clarified that the new rules will initially apply only to newly registered net metering consumers. However, existing users will also be shifted to the new framework once their current agreements reach expiry. The regulator said the changes are intended to streamline net metering operations, enhance grid stability, and ensure a clearer and more balanced pricing structure.
Separately, NEPRA has imposed penalties on the National Grid Company and the Central Power Purchasing Agency (CPPA) in connection with the nationwide blackout of January 2021. On December 8, 2025, the authority held both entities responsible for the prolonged power outage that left much of the country without electricity for nearly 20 hours.
Each organization has been fined Rs25 million and directed to deposit the amount within 15 days. NEPRA noted that similar major power disruptions occurred in 2021, 2022, and 2023, pointing to recurring weaknesses in the system. A special investigation committee was formed to examine the blackout, but during hearings, both entities failed to provide satisfactory explanations to the regulator.
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