Awais Leghari defends solar net metering rule changes

ISLAMABAD: Federal Minister for Energy Awais Leghari defended the recent changes in solar net metering rules in the Senate on Tuesday, saying that the amendments are not policy but regulatory in nature and are aimed at protecting electricity consumers from additional financial burden.

The minister explained that the primary responsibility of the National Electric Power Regulatory Authority (Nepra) is to protect the interests of consumers and prevent unnecessary increases in electricity prices. He said that Nepra has not changed any of the provisions already agreed with consumers, and the current seven-year net metering agreements will remain in force.

Leghari said that the Pakistan Solar Association (PSA) has supported the government’s measures and despite these changes, solar power generation is expected to increase by 8,000 MW.

The minister attributed the high electricity prices during the 2018-2022 government to the sharp depreciation of the rupee, which the current government is dealing with. He further said that the net metering mechanism has been approved by the federal cabinet and Pakistan has achieved the target of 55 percent clean energy in its energy sources.

He also mentioned the near-elimination of furnace oil from the national grid and said that international institutions have endorsed the power sector reforms of the Shehbaz Sharif government.

Regarding IPPs (Independent Power Producer Companies), Leghari said that the government has reviewed the contracts and appointments have been made on merit rather than political recommendations, while strong decisions have been taken without coming under pressure from influential circles.

Presenting consumer data, he said that out of 34.5 million electricity consumers, only 466,000 are net metering consumers. He said that if NEPRA was allowed to purchase electricity at the rate of Rs26 per unit, the burden on ordinary consumers would be Rs550 billion annually.

Leghari confirmed that under the rates approved by NEPRA, new consumers can recover their investment in three years. He concluded by saying that if the rules had not been amended, the electricity price for general consumers would have increased by Rs5 per unit.