LHC declines to stay net metering reversal

Court rejected request for immediate restraining order, could not pass order without hearing the other side

LAHORE:

The Lahore High Court (LHC) declined to issue an immediate stay order against the new net metering policy introduced by the National Electric Power Regulatory Authority (Nepra) while issuing notices to the concerned authorities for their response.

Justice Abid Hussain Chattha heard a petition challenging the revised policy on Friday. The federal government, Nepra and the Lahore Electric Supply Company (Lesco), among others, were nominated as respondents in the case.

During the hearing, the petitioner's counsel argued that the government reneged on its earlier promise of "unit-for-unit" net metering, adding that the new policy jeopardized the investments of citizens who installed solar systems.

The lawyer contended that Nepra's new regulations violate fundamental property rights and urged the court to declare the policy void and suspend its implementation until a final decision on the petition.

However, the court rejected the request for an immediate restraining order, observing that it could not pass an order without hearing the other side. The bench subsequently issued notices to the federal government and other respondents, seeking their replies.

Nepra last week overhauled the country's net metering regime, moving rooftop solar and other small generators to a new "net billing" system under the Nepra (Prosumer) Regulations, 2026. This fundamentally changed how electricity producers are paid and repealed the decade-old framework.