Prime Minister Shehbaz Sharif has instructed the National Electric Power Regulatory Authority (NEPRA) and the Power Division to update net metering rules to adjust buyback rates.
During a recent meeting, the Power Division raised concerns about the financial impact of widespread net metering by consumers. As a result, the ministry proposed reducing buyback rates to Rs. 11-12 per unit.
The International Monetary Fund (IMF) is pushing consumers to cover the full cost of electricity.
The meeting concluded that the Power Division would refine and present a summary on transitioning from net metering to gross billing. This includes creating a separate tariff category, revising buyback rates, amending net metering regulations, and establishing a dynamic formula for a reasonable payback period.
Following discussions, the Prime Minister directed the Power Division and NEPRA to approve the necessary amendments to net metering regulations. Final recommendations are expected to be ready by May 31, 2024.
This decision comes as many electricity consumers have turned to solar power to avoid power outages and high electricity prices. Even industrial and commercial sectors are increasingly using solar energy.
The increase in net metering has raised concerns for the Power Division and distribution companies, which have seen declining revenues. According to reports, solar panels capable of generating 6,000 MW were imported in the first nine months of the current fiscal year.
