Punjab Approves New Electricity Duty Rules For Large Generators And Solar Systems
- Punjab has approved new electricity duty rules for private generators and solar systems above 500 KVA.
- Industrial and commercial users will pay four paisas per unit, while domestic consumers are expected to remain exempt.
- The new framework is projected to generate Rs306 million in annual revenue.
The Punjab Cabinet has approved the Punjab Electricity Duty Rules 2026, introducing a new regulatory framework for electricity duty on large private power generation facilities, including industrial generators and solar energy systems.
Under the newly approved rules, private power generation facilities with a capacity of more than 500 KVA will be brought under the electricity duty regime. The move primarily targets large industrial and commercial self-generation units operating across the province.
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According to the new framework, industrial and commercial consumers using private power generation systems will be required to pay an electricity duty of four paisas per unit. Domestic consumers, however, have been recommended for complete exemption from the levy.
Officials estimate that around 1,177 industrial and commercial facilities will fall within the scope of the new regulations. The Punjab government expects the measure to generate approximately Rs306 million in additional annual revenue.
The rules also introduce stricter monitoring and enforcement mechanisms. Electric Inspectors will be authorized to inspect records of private power generation facilities and ensure compliance with regulatory requirements. Registration of all eligible private generation systems will be mandatory.
Industrial and commercial operators will be required to install separate energy meters for self-generated electricity. Authorities will maintain records of major self-generation facilities, including large solar power installations operating within the province.
Under the new system, operators must submit monthly returns and maintain detailed log books documenting electricity generation and consumption. Failure to comply with reporting requirements may result in penalties and regulatory action.
The framework further empowers Electric Inspectors to seal power generation facilities in cases of non-compliance. Any outstanding dues will be recoverable under the Land Revenue Act.
A late payment surcharge ranging from 10 to 15 percent will be imposed on unpaid electricity duty. The rules also provide for fines and possible suspension of power generation activities if operators submit incorrect records or violate regulatory provisions.
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