The Punjab cabinet has approved the Electricity Duty Rules 2026, introducing a new taxation framework for private power generation systems, including large generators and solar installations, while exempting domestic consumers from the levy.
Under the new rules, private generators and solar power systems with a capacity exceeding 500 kVA will be subject to electricity duty. Industrial and commercial consumers will be charged 4 paisa per unit of electricity generated for self-consumption.
Provincial authorities estimate that the new taxation regime will generate approximately Rs300 million in annual revenue. Officials said around 1,177 industrial and commercial facilities across Punjab will fall under the new framework.
Domestic consumers have been fully exempted from the electricity duty, ensuring that household users will not be affected by the new regulations.
The rules also grant broader enforcement powers to the electric inspector, including the authority to inspect private power plants, examine records, seal non-compliant facilities, and recover dues under the Land Revenue Act.
Under the revised framework, all private power producers, including owners of qualifying solar energy systems, will be required to register their installations. Industrial and commercial self-generation units must also install separate energy meters and maintain monthly returns and operational log books.
Officials warned that failure to comply with the regulations could result in late payment surcharges ranging from 10 to 15 percent, financial penalties, and possible suspension of electricity generation operations.
The Punjab government has simultaneously repealed the Electricity Duty Rules 2012, replacing them with the updated 2026 framework aimed at strengthening regulatory oversight and revenue collection from private power generation.
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