Government Mulls Lowering Net Metering Tariff for Solar Power Units

In a recent development, the government has indicated its intention to potentially decrease the net metering tariff for rooftop solar power units. This information was disclosed during a discussion of numerous energy-related topics by the Senate Standing Committee on Power. The committee meeting was presided over by Senator Azam Nazeer Tarar.

Circular Debt Frozen at Rs. 2.31 Trillion

Government officials disclosed during the session that the circular debt in the power sector has been stabilized at Rs. 2.31 trillion. Power Secretary Asad Rehman Gilani highlighted that recent fuel cost adjustments had exceeded. Tariff estimates due to increased insurance costs and tanker charges from the Middle East.

Debate Over Net Metering Tariff

One of the focal points of discussion was the current net metering tariff, currently set at Rs. 22 per unit. Officials expressed concerns and suggested the possibility of reducing the tariff. Caretaker Power Minister Muhammad Ali and Secretary Gilani argued for a lower tariff. Emphasizing the need for equity and suggesting that affluent urban homeowners could bear higher rates compared to smaller consumers.

Circular Debt Management and IMF Targets

Secretary Gilani provided insights into the successful management of the circular debt, attributing it to efficient power sector management, tariff adjustments, and an anti-theft campaign. He noted that the circular debt had been effectively managed as of December 21, 2023, meeting targets set by the IMF.

Scrutiny Over Dasu Project Contracts

The committee also scrutinized the award of contracts for the transmission line of the Dasu project. Contracts involving companies such as Sinohydro Corporation and Harbin Electric International, as well as consultant GOPA Intec of Germany, were under discussion.

Overall, the meeting shed light on critical energy-related issues and underscored the government’s efforts to address challenges in the power sector.

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