NEPRA’s New Tariff Might Cause Rs 10 Per Unit Loss to Solar-Installed Consumers

The National Electric Power Regulatory Authority (NEPRA) is thinking about reducing the cost of purchasing electricity from solar-installed consumers from Rs. 19.32 per unit to Rs.

For net-metering customers who have installed solar-powered systems in their homes, NEPRA has announced the establishment of new tariffs. The final decision in this matter has not yet been made, so the new tariff may not have an impact on their bills.

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This was emphasized by NEPRA Chairman Engr. Tauseef H. Farooqi during the public hearing on the 2015 Net Metering Regulation amendment.

In case the regulatory body changes the net metering rules, according to NEPRA Chairman, a new rate will be set for customers who have solar panels installed. The current solar net metering tariff is Rs 19.32 for each unit. The proposal, however, is to lower this tariff to Rs. 9 per unit. According to him, the proposed tariff won’t result in any losses for the net-metered consumers.

The decision to amend the regulations has not yet been made, according to the NEPRA Chairman. Additionally, he stated that 20,700 of Pakistan’s 3.6 million electricity users are net-metered at the moment.

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He emphasized the NEPRA’s jurisdiction and stated that although the regulatory body has the right to make decisions on its own, it has indeed held a public hearing to discuss the issue.

When the solar net-metering tariff was announced, he claimed that Pakistan was facing significant power sector challenges; however, since Pakistan now has an installed capacity of about 41,000 MW, the situation has changed.

The Chairman of NEPRA added that it is entirely up to solar-installed consumers to choose whether or not to feed power into the grid. Customers are free to choose not to supply power to the national grid if they believe doing so will result in losses.

The only goal of NEPRA is to relieve consumers of their suffering. He also emphasized that Pakistan currently generates 5% of its electricity from renewable resources like bagasse, wind, and sunlight. The government is attempting to modernize Pakistan’s electrical infrastructure, though.

The solar-installed consumers voiced concerns during the hearing about the proposals, with a number of them stating that it seems NEPRA wants to discourage solar installation.

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