Constitutional Challenge to NEPRA Prosumer Regulations

RIAA Barker Gillette has filed a constitutional petition before the Islamabad High Court challenging the NEPRA Prosumer Regulations 2026. The regulations replaced Pakistan’s decade-old net metering regime with a net billing framework. This change fundamentally alters how solar consumers receive compensation for electricity exported to the grid.

A Structural Shift in Pakistan’s Solar Framework

Under the previous regime, solar consumers offset exported electricity against imported units on a one-to-one basis. The revised framework now compensates exported electricity at the national average energy purchase price — approximately PKR 11 per unit — while consumers continue to pay prevailing retail tariffs for grid electricity. As a result, the commercial position of existing solar consumers has shifted significantly.

The Constitutional Challenge

The petition contests both the process and substance of this regulatory change. Specifically, it raises questions about consultation and notification requirements under the governing statute. It also examines whether such changes can lawfully apply to subsisting agreements without adequate transitional mechanisms.

At the core of the challenge are issues of regulatory authority, legal certainty, and consumer protection. The petition argues that changes materially affecting the economic position of existing consumers require clear statutory backing. Moreover, the NEPRA Prosumer Regulations raise broader concerns about the limits within which regulatory authorities may revisit previously settled frameworks.

Broader Sectoral Context

Recent amendments indicate that existing net metering consumers may continue under their current agreements until expiry. However, all new installations now fall under the revised net billing framework. This phased transition has prompted debate across the industry regarding investment certainty and the long-term viability of distributed renewable energy projects.

“This is not about whether net billing is good or bad policy. It is about whether such a fundamental shift could lawfully proceed through delegated regulations without following constitutional and statutory safeguards. At its core, this is about regulatory discipline — even well-intentioned policy must travel through the right legal route,” said Nadir Altaf, Partner at RIAA Barker Gillette.

The case has attracted attention from investors, developers, and consumers across Pakistan’s energy sector. Its outcome could shape the future direction of regulatory reform concerning distributed generation and renewable energy policy.

The team advising on this matter is led by Nadir Altaf (Partner – Pakistan).

For more information on electricity regulation in Pakistan, contact Nadir Altaf today.

This article is not legal advice; it provides information of general interest about current legal issues.

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RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in three major cities in Pakistan: Karachi, Islamabad and Lahore, and affiliated offices in Dubai (DIFC) and London. 

The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognise the firm as a top-tier law firm in Pakistan.

RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world’s leading network of independent law firms with in-depth experience in over 125 countries worldwide.