An internal circular dated February 25, 2026, shows IESCO instructing field engineers to implement NEPRA’s Prosumer Regulations 2026 in full, even as the Prime Minister’s intervention to protect solar consumers remains unresolved. The circular was reportedly issued yesterday but has been withdrawn today
An internal circular from the Islamabad Electric Supply Company, reviewed by this reporter, shows the utility pressing ahead with implementing NEPRA’s controversial Prosumer Regulations 2026 for new solar consumers, raising questions about whether distribution companies are moving faster than the government’s own review process intends.
The circular, bearing reference number 1692-1707/IESCO/CE/CSD and dated February 25, 2026, was addressed to all Superintending Engineers (Operations) under IESCO. It directs field staff to thoroughly examine the revised regulations “in their entirety” and ensure “strict implementation in true letter and spirit, without deviation or delay.” A new web portal developed by PITC for DG prosumers is also to be followed strictly, it adds.
The circular arrives just ten days after Prime Minister Shehbaz Sharif personally intervened in what had become one of the most publicly contested energy policy decisions in recent memory.
Prime Minister Shehbaz Sharif took immediate notice of NEPRA’s newly notified Prosumer Regulations 2026, directing authorities to protect the rights of existing solar consumers and prevent any unfair financial burden. A high-level meeting was held under the prime minister’s chairmanship, attended by key federal ministers and senior officials, to review the impact of the new regulations on current and future energy users.
During the meeting, the prime minister instructed the Power Division and NEPRA to file a review appeal, ensuring that all contracts signed with existing solar consumers remain fully protected without retrospective changes. He stressed that the burden of nearly 466,000 solar users should not be shifted onto 37.6 million grid-connected electricity consumers.
Energy Minister Awais Leghari subsequently informed the National Assembly that the government had stopped the proposed shift from net metering to net billing and that, on the prime minister’s direction, the matter was being reviewed. He said any adverse impact of the amended regulations on existing consumers had been stopped. Solar power generation currently stands at between 20,000 and 22,000 megawatts nationally, of which around 6,000 megawatts are connected to the grid under the net metering system.
The IESCO circular does not apply the new rules retroactively to existing consumers, which is consistent with the PM’s stated position. However, it formally instructs engineers to implement all other provisions of the Prosumer Regulations 2026 for new connections, including the shift to net billing, reduced solar buyback rates, a new installation limit, transformer capacity caps, and a shortened five-year contract period.
The document lists eight design changes now in effect for new consumers. The installation limit drops from 1.5 times the sanctioned load to exactly 1.0 times. The contract period shortens from seven years to five. The buyback rate shifts from the Power Purchase Price to the lower Energy Purchase Price. Under the new regulations, the solar buyback rate has been cut to Rs. 8.13 per unit, down from Rs. 25.9, while the contract period has been reduced from seven to five years. Licensing authority for systems up to 25kW moves from DISCOs to NEPRA directly.
The circular further places legal accountability firmly on field officers, warning that sanctioning officials will be personally held responsible for any ambiguity or violation identified during physical checks of distributed generation facilities.
The policy whiplash of February 2026 has been severe. Within the span of just one week, Pakistan witnessed a major regulatory overhaul, widespread public outcry, and a high-level government intervention. NEPRA notified the shift from net metering to net billing on February 9. By February 10 to 14, the Pakistan Solar Association, industrial bodies, and thousands of homeowners were protesting, arguing the sudden policy shift would kill green energy momentum. On February 15, the Prime Minister directed a review. On February 16, NEPRA released a draft amendment proposing a grandfathering clause to protect all existing net metering licenses for their remaining seven-year term. NEPRA subsequently granted a 30-day protection window by issuing the draft amendment, with stakeholders given until mid-March to submit comments before a final gazette notification is issued.
Under the original regulations, as now being implemented for new consumers, the export tariff was cut from PKR 26 per kilowatt-hour to PKR 13 per kilowatt-hour. The attempt to apply the lower rate retroactively to existing contract holders was quashed by the Prime Minister, but the new rate stands for all future connections.
The Pakistan Solar Association warned at a press conference on February 12 that “the government’s flip-flop policy is discouraging foreign investment… Just as Pakistan was becoming a leader in renewable energy adoption, these regressive measures are pushing us back to the fossil fuel era.” Major solar vendors reported a 30% drop in new inquiries since the notification.
The IESCO circular, in the absence of any accompanying clarification distinguishing its implementation from the government’s stated pause, effectively signals to the market that new solar connections in the Islamabad and Rawalpindi region will proceed under the less favorable net billing framework regardless of how the NEPRA review consultation concludes.
The circular was later taken back by IESCO.
