Overview
- The Punjab cabinet approved the Electricity Duty Rules 2026, repealing the 2012 rules and establishing a new provincial framework for private power generation.
- The rules apply to private generators and commercial solar systems above 500 kVA, covering an estimated 1,177 industrial and commercial sites while exempting domestic consumers.
- Industrial and commercial self‑generation will face an electricity duty of 4 paisa per unit, with the government projecting roughly Rs300–306 million in additional annual revenue.
- Operators must register systems, fit separate energy meters for self‑generation, keep monthly returns and logbooks, and submit to inspections; penalties include 10–15% late surcharges, fines, sealing of facilities, and recovery under the Land Revenue Act.
- The change formalizes taxation and oversight of large off‑grid generation, which will raise compliance costs for businesses and improve official documentation of private power and commercial solar capacity.