ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has notified comprehensive new performance standards for electricity distribution companies (Discos), introducing mandatory consumer compensation, stricter service deadlines and heavy fines for failures.
The Performance Standards (Distribution) Regulations 2026, issued after nearly two years of consultation with stakeholders, replace the Discos Performance Rules 2005. The new framework aims to improve consumer protection, power supply quality, safety and accountability, particularly as the government moves ahead with the privatisation of distribution companies.
Under the new regulations, Discos will face mandatory compensation to consumers, in addition to fines, for failing to restore electricity within prescribed timelines, replace faulty meters, address voltage fluctuations, provide new connections and deliver other essential services.
The regulations also introduce clearer and measurable key performance indicators (KPIs) to assess the performance of distribution companies. The move is considered particularly significant ahead of privatisation, as prospective investors will have greater clarity regarding the regulatory benchmarks and service standards applicable to Discos.
Nepra has also directed Discos to establish complaint centres at the circle level, with complaints capable of being escalated to senior management. Utilities will further be required to conduct consumer satisfaction surveys twice a year, with an accuracy rate of up to 98 per cent.
As part of the enhanced consumer facilitation measures, all Discos will establish Consumer Facilitation Applications (CFAs) to provide consumers with direct and faster digital communication channels.
For planned power outages, consumers must be informed at least 48 hours in advance through SMS, email or other digital platforms.
The regulations also provide special protection to defence establishments, which will remain exempt from unilateral power cuts. Any shutdown affecting these installations will require mutual agreement and prior coordination.
For unscheduled outages affecting high-load industrial consumers and captive power producers (CPPs), Discos will be required to provide 30-minute advance warnings where possible and issue real-time updates regarding restoration.
A certified grid emergency is the only exception to the advance-warning requirement. Even in such circumstances, the utility must immediately record the incident in an automated Outage Management System and include details in its quarterly reports to Nepra.
The new regulatory framework represents a major shift from the 2005 rules, placing greater emphasis on measurable performance, consumer rights, transparency and accountability across Pakistan’s electricity distribution sector.
