Punjab Cabinet clears new power duty guidelines for big power producers, solar plants

The Punjab Cabinet has passed the Punjab Electricity charge Rules, 2026 that would establish a new framework for levy of electricity charge on large private power production units including generators and solar power systems.

As per the accepted guidelines, the private generators and solar systems with capacity more than 500 KVA would be included into the electricity duty net. The step is intended to control major self-generation facilities in the industrial and commercial sectors.

Under the system, industrial and commercial consumers will be paid an electricity duty of four paisa per unit. Domestic consumers nevertheless have been advised to be fully exempted from the new tax.

The Punjab government estimates that the new tariff scheme will produce an annual revenue of Rs306 million. Officials said the new guidelines are expected to impact 1,177 industrial and commercial sites.

Electric Inspectors can seal power producing plants not in accordance with the laws. The balance payable shall be recovered under the Land Revenue Act.

The regulations also advocate giving Electric Inspectors authority to review records of private power producing facilities. Compulsory registration will be required for operators of private power producing installations.

Industrial and commercial self-generation units will have to install separate energy meters. Authorities have also agreed to maintain a record of all major self-generation systems including solar power systems.

Under the new system, operators should file monthly returns and keep log books recording electricity generation and consumption. Those who fail to pay the duty within the stipulated period will be liable to late payment penalty of 10 to 15 per cent.

The guidelines also call for fines and probable suspension of power producing activities for submitting erroneous records or violation of regulatory standards.

The Punjab administration has formally decided to replace the Electricity Duty Rules 2012 with the Punjab Electricity Duty Rules 2026 after getting the nod for the new framework.