Govt halts new net metering policy after public outrage

ISLAMABAD: The federal government has halted the transition from net metering to net billing for consumers while contesting the regulatory decision at the same time because rising solar policy criticism has created political and public pressure for the government.

Federal Minister for Power Division Awais Leghari addressed the National Assembly by stating that criticism about net metering should be assessed through its impact on power sector reforms.

The government achieved a decrease in circular debt through the implementation of two financial measures, which resulted in a total debt reduction of Rs. 3,400 billion.

The government achieved a decrease in IPP tariffs while obtaining Rs. 100 billion in tariff reductions from a project associated with the prime minister’s family member.

He also mentioned that the government has lowered electricity rates for industrial users to boost economic development. The minister explained that the net metering system, which the PML-N government established in 2017, has experienced four to five changes in its regulatory framework since then.

He explained that the Economic Coordination Committee reviewed the matter before it reached the federal cabinet, which now allows the government to appeal the regulator’s decision.

Leghari declared that Pakistan now has between 20,000 and 22,000 megawatts of solar power capacity. The solar power system consists of 6,000 megawatts, which operate through net metering, and 7,000 megawatts, which serve industrial and commercial customers.

He said that approximately 700000 people use net metering at the present moment. He asked whether it was just for the government to acquire electricity at Rs. 27 per unit through net metering while it obtains power from other sources at roughly Rs. 8 per unit.