Pakistan's power regulator sets new performance standards for distributors

Pakistan's National Electric Power Regulatory Authority (Nepra) has finalized new performance standards for all electricity distribution companies (Discos), marking a significant overhaul after more than two decades. The "Performance Standards (Distribution) Regulations 2026" replace the older Discos Performance Rules from 2005 and were developed after nearly two years of stakeholder consultations.

A key feature of the new regulations is the introduction of mandatory consumer compensation. For the first time, utilities will be required to compensate consumers if they fail to meet strict deadlines for restoring power after blackouts, replacing faulty meters, addressing voltage fluctuations, or providing new connections. This shift significantly strengthens consumer protection measures.

These updated standards establish clearer and more measurable Key Performance Indicators (KPIs) for assessing Disco performance. This clarity is particularly vital as Pakistan moves forward with the privatization of its distribution companies. Prospective investors will now have a more defined regulatory framework against which to evaluate the companies' operational efficiency and reliability.

The regulations also mandate improvements in customer service, requiring complaint centers at the circle level that can escalate issues to Disco management. Companies must conduct biannual consumer satisfaction surveys with high accuracy rates. Furthermore, Discos must provide consumers with 48-hour advance notice via digital platforms for planned power outages, with exceptions for defense establishments requiring mutual agreement. For unscheduled outages affecting industrial consumers, a 30-minute warning is required, along with real-time restoration updates, unless a certified grid emergency occurs.