NEPRA Drafts Rules for Standalone Power Pilots in High-Loss Areas

NEPRA published draft Standalone Electric Power System (Pilot Projects) Regulations 2026 on 24 October and invited comments within 30 days under section 47(3) of its Act. The rules would let the federal or a provincial government sponsor standalone supply schemes in parts of a distribution licensee's area with high losses, poor recovery or service, remoteness, or a network that is uneconomic to run.

The sponsor funds each scheme. Its costs cannot enter a distribution company's revenue requirement, and if an area is later reconnected to the grid, the sponsor pays for that too. The area would be removed from the host company's distribution and supplier-of-last-resort licences, with licence modifications due within 30 days, and consumers could be disconnected from the grid only after the standalone system is installed. The host company must also assess what the carve-out means for its privatisation.

Each distribution licensee could host up to two pilots, and more with NEPRA's approval. For the ten ex-WAPDA companies, that is 20 pilots before any further approval is needed. Progress reports would be due after three months and NEPRA would assess the pilots after a year. The draft does not set numeric targets for losses or recovery.