Performance standards for distribution companies notified

ISLAMABAD: After more than two decades, the National Electric Power Regulatory Authority (Nepra) has notified sweeping guaranteed performance and overall performance standards for all distribution companies (Discos) to ensure compliance even after going into private hands under the ongoing privatisation process.

The new Performance Standards (Distribution) Regulations 2026, issued by the regulator after almost two years of consultations with stakeholders, replace the Discos Performance Rules 2005. Under the new standards, utilities will, for the first time, face mandatory consumer compensation, besides heavy fines, if they fail to meet strict deadlines for restoring power after blackouts, replacing faulty meters, addressing voltage fluctuations, providing new connections and other services.

Importantly, these standards establish clearer and more measurable key performance indicators (KPIs) against which the performance of distribution companies would be assessed. This is particularly important ahead of the privatisation process, as prospective investors look for clarity on the regulatory benchmarks and KPIs against which the performance of Discos would be evaluated.

The new standards require complaint centres at the circle level going upto Discos management instead of relying solely on the existing centralised network. Discos will also be required to conduct biannual consumer satisfaction surveys with an accuracy rate of up to 98pc.

Distribution firms face mandatory consumer compensation and fines for service failures

The newly released 68-page regulatory document signals a massive shift toward consumer protection, safety requirements and power supply quality. It forces historically slow-moving monopolies to operate with unprecedented speed and transparency. All Discos would be required to create Consumer Facilitation Applications (CFAs) for direct and instant communication channel with consumers.

For planned outages, Discos must give consumers 48-hour advance notice via SMS, email or other digital platforms.

Defence establishments would continue to be completely exempt from unilateral power cuts. Power shutdowns to these vital installations can now only occur through mutual and prior agreements.

For unscheduled outages affecting high-load industrial consumers and CPPs, utilities must give 30-minute advance warnings and provide real-time restoration updates. The only exception to this rule is a certified grid emergency. Even then, the utility must log the crisis immediately into an automated Outage Management System and report it directly to the regulator in quarterly filings.

Published in Dawn, August 26th, 2026