What's Happening?
The government has announced a reduction in power tariffs for industrial consumers, effective from February 11, 2026. The average reduction is Rs4.04 per unit, impacting various industrial categories. Smaller industrial consumers, categorized as B1 with a connection load of up to 25kW, will see their average tariff reduced from Rs30.80 to Rs26.03 per kWh. This includes new off-peak and peak rates. Larger industrial consumers on higher transmission lines will also benefit from reduced tariffs. Concurrently, the government has requested the National Electric Power Regulatory Authority (Nepra) to restore contractual rights for existing net-metered solar consumers, following backlash against recent regulatory changes. These changes had altered payback
rates and shifted consumers from net metering to net billing, prompting criticism from prosumers and political parties.
Why It's Important?
The reduction in industrial power tariffs is significant for the economic landscape, potentially lowering operational costs for industries and enhancing competitiveness. This move could stimulate industrial growth and investment, benefiting the broader economy. The restoration of contractual rights for solar prosumers addresses concerns about regulatory stability and investor confidence in renewable energy initiatives. By ensuring existing agreements are honored, the government aims to maintain trust in its energy policies, which is crucial for future investments in sustainable energy solutions. The decision reflects a balancing act between reducing energy costs and supporting renewable energy commitments.
What's Next?
Nepra has called for public comments on the proposed amendments to the Prosumers Regulations 2026, indicating ongoing regulatory adjustments. Stakeholders, including industrial consumers and solar prosumers, are likely to engage in this process to influence the final regulatory framework. The government's actions suggest a focus on mitigating backlash while promoting industrial and renewable energy sectors. Future developments will likely involve further regulatory refinements to align with both economic and environmental goals.
