News
NEPRA Proposes Higher Electricity Infrastructure Charges for High Rise Buildings
By Mariam Khan
Real Estate Analyst
3 min read
The National Electric Power Regulatory Authority has proposed amendments to the Consumer Service Manual that could increase the cost of obtaining electricity infrastructure for multi storey residential and commercial developments. Under the proposal, multi storey buildings requiring a dedicated transformer above 500kVA would have to pay grid sharing charges, whereas currently ground plus three storey buildings are not treated as high rises for these charges. NEPRA is also proposing changes covering dedicated transformers, 11kV feeders and rehabilitation costs.
What the Proposed Charges Would Actually Cost
For larger loads, consumers could face 100 percent of applicable grid sharing and transmission charges, with the reported grid sharing component reaching Rs8.948 million per megawatt plus proportionate land costs for loads exceeding 5 megawatts. This is a substantial, clearly quantified cost figure rather than a vague fee increase, giving developers of large apartment towers, mixed use developments, and malls a concrete number to weigh against current project cost projections while the proposal remains open for comment.
Why Redefining What Counts as a High Rise Matters as Much as the Charges Themselves
The proposal's shift in classifying ground plus three storey buildings differently from taller high rises for grid sharing purposes is arguably as significant as the charge amounts themselves, since it changes which category of development actually falls under the higher charge regime in the first place. Developers currently planning projects near this ground plus three threshold should pay particular attention to exactly where NEPRA draws this line in the final amendment, since a project sitting just above or below that threshold could face a materially different electricity infrastructure cost outcome.
Why This Targets a Specific, Growing Segment of Pakistan's Construction Sector
Multi storey apartment towers, mixed use developments, and malls represent one of the fastest growing segments of Pakistan's urban construction sector, particularly in major cities where vertical development has become increasingly common as available horizontal land grows scarcer and more expensive. A regulatory change that specifically raises electricity infrastructure costs for this segment could influence the relative economics of high rise versus lower rise development, potentially affecting how developers weigh building height and density decisions on future projects.
Why the Comment Period Timeline Matters for Developers
NEPRA has opened these proposed amendments for stakeholder comments until October 25, 2026, meaning nothing here is final and the actual adopted charges, thresholds, or rehabilitation cost provisions could still change based on feedback from developers, utilities, and other stakeholders during this window. Developers with projects currently in planning or early design stages have a genuine opportunity to weigh in during this comment period, and should treat the current proposal as the starting point for negotiation rather than a confirmed final cost structure.
What This Means for Developers Going Forward
Developers planning apartment towers, mixed use developments, malls, or other large projects requiring dedicated transformers above 500kVA should begin factoring these proposed charges into preliminary cost projections now, while also monitoring the stakeholder comment process through October 25 for any changes to the thresholds or charge amounts before finalising project budgets. Given the scale of the reported grid sharing component specifically for loads exceeding 5 megawatts, larger scale developments have the most at stake in how this proposal is ultimately finalised.