The Punjab Cabinet has approved the Punjab Electricity Duty Rules 2026, introducing a new framework to regulate and tax private power generation systems, including large generators and solar power units.
The Punjab Cabinet approved the Punjab Electricity Duty Rules 2026 in Lahore. The new rules will replace the Electricity Duty Rules of 2012.
According to officials, the framework has been prepared to bring private generators and solar systems above 500 KVA into the electricity duty net.
Industrial, commercial users to pay duty
Under the approved framework, industrial and commercial consumers using self-generation systems will pay electricity duty. A duty of 4 paisa per unit will be imposed on industrial and commercial consumers covered by the new rules.
The Punjab government expects to generate additional annual revenue of Rs306 million through the measure.
Domestic consumers exemption
Officials recommended granting complete exemption to domestic consumers from the new electricity duty. The proposed duty will apply only to large industrial and commercial self-generation units.
According to the government, 1,177 industrial and commercial sites will come under the scope of the new duty.
The rules recommend making registration mandatory for those operating private power generation systems. Separate energy meters will also be mandatory for industrial and commercial self-generation units.
The Punjab government has decided to maintain records of all major self-generation systems, including solar power installations.
Monthly returns and logbooks required
Under the new rules, operators covered by the duty framework will be required to submit monthly returns. They will also have to maintain and submit logbooks related to power generation.
It has been recommended that electrical inspectors be empowered to check records of private power plants.
A late payment penalty of 10% to 15% will be imposed for non-payment or non-submission of duty. According to the rules, fines may be imposed for incorrect records.
Authorities may also take action to stop electricity generation in case of violations.
Power generation facilities may be sealed
Under the new framework, electrical inspectors will be empowered to seal power generation facilities. Recovery from those who fail to pay duty will be carried out under the Land Revenue Act.
Officials say the rules are aimed at improving documentation, compliance and revenue collection from large private power generation systems.
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