LAHORE (Dunya News) - The Punjab Cabinet has approved the Punjab Electricity Duty Rules 2026, introducing a new framework for electricity duty on large private power generation facilities, including generators and solar power systems.
Under the approved rules, private generators and solar systems with a capacity exceeding 500 KVA will be brought into the electricity duty net. The move is aimed at regulating large-scale self-generation facilities operating in the industrial and commercial sectors.
According to the framework, industrial and commercial consumers will be charged an electricity duty of four paisas per unit. Domestic consumers, however, have been recommended for complete exemption from the new levy.
The Punjab government expects the new duty regime to generate an additional Rs306 million in annual revenue. Officials estimate that 1,177 industrial and commercial sites will fall within the scope of the new rules.
The regulations grant Electric Inspectors the authority to seal power generation facilities in cases of non-compliance. Outstanding dues will be recoverable under the Land Revenue Act.
The rules also recommend empowering Electric Inspectors to examine records of private power generation facilities. Registration will be mandatory for entities operating private power generation systems.
Industrial and commercial self-generation units will be required to install separate energy meters. Authorities have also decided to maintain records of all major self-generation systems, including solar power installations.
Under the new framework, operators will be required to submit monthly returns and maintain log books documenting electricity generation and consumption. A late payment penalty ranging from 10 to 15 percent will be imposed on those failing to pay the duty within the prescribed period.
The rules further provide for fines and possible suspension of power generation activities in cases where incorrect records are submitted or regulatory requirements are violated.
With the approval of the new framework, the Punjab government has formally decided to replace the Electricity Duty Rules 2012 with the Punjab Electricity Duty Rules 2026.