ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is to protect interest of both net metering consumers, as well as, remaining non net metering 35 million consumers across the country.

Well informed sources in Nepra told Business Recorder that the number of net metering consumers at present is around 28,000. The excess units delivered by net metering consumers in the grid in August 2022 were around 4.2 GWhs which are expected to increase exponentially, keeping in view the fact that installed capacity for the Distributed Generators (DGs) has increased from less than 100 MW in FY 2019-20 to 500 to 750 MW to-date.

“Interest of net metering consumers is to be protected but at the same time, Nepra has to protect the interest of the remaining 35 million consumers, who do not have the net metering facilities,” sources added.

The power regulator maintains that it is a myth at different forums that Discos are the beneficiaries of the proposed amendment, adding that as a matter of fact, power purchase cost is pass-through for Discos; therefore, any reduction in buy back price of net metering units would mean reduction in the overall power purchase cost, thus directly benefiting all the consumers.

Proposed amendments in Net Metering Rules: Standing body on Cabinet Secretariat has stopped Nepra in its tracks

“If for a solar IPP, the tariff is determined at around Rs.9/kWh, would it be in the interest of the consumers to buy the same electricity from the net metering consumers at double price? How would Nepra justify these inconsistencies in its own decisions at various forums,” the sources further queried.

The existing mechanism provides netting-off of kWh supplied by a net metering consumer during peak hours against the kWh supplied by a Disco during peak hours and the kWh supplied by a net metering consumer during off peak hours against the kWh supplied by a Disco during off peak hours.

Discos had earlier requested Nepra that instead of net metering, the entire units exported by a Distributed Generator may be procured at Energy Purchase Price (EPP), but the proposal was not accepted by Nepra on the pretext that net metering is predominantly based on the concept of avoided cost. Therefore, as long as the mechanism of units being netted-off remains applicable, net metering regime would always be viable & tempting. With the applicable off-peak rates of Rs.28.07/kWh, the payback period for net metering consumers has reduced to around 4 years.

“Amendments in net metering policy should not only be for 28,000 net metering consumers but also the non-net metering 35 million consumers, who have already been paying the highest tariffs of Rs.28.07/kWh and Rs.34.39/kWh for off-peak and peak hours respectively, and would be further burdened with the impact of increased settlement price of these rich net-metering consumers,” said one of the consumers, who is purchasing power from IESCO. If the Authority approves its proposed amendment, it would be a win-win situation for both parties, the sources continued.

As per Nepra officials, no amendment has been made yet and Nepra has only solicited comments from the general public. Any decision in this regard would be taken after giving due consideration to the comments received form stakeholders and keeping in view the public interest.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Feisal Ali Oct 11, 2022 10:14am
NEPRA's NAPP (National Average Purchase Price) calculation does not factor in rooftop Solar generators. But only SOLAR IPP's. Therefore any cost reduction will not impact the NAPP rate. If NAPP rate is unaffected then the benefit of the rate reduction goes to the DISCO not the 36 million consumers. Why is NEPRA not telling the truth to the public. Different treatment for the RICH & POWERFUL DISCO's and IPP's while the small flies in this country to be swatted.
thumb_up Recommended (0)
Yousuf Ali Oct 11, 2022 01:31pm
It maybe true for other DISCOs but KE is not netting off units. They are applying GST and FCA charges on gross units consumed instead of the net off units.
thumb_up Recommended (0)
Murtaza Ahmed Ali Oct 11, 2022 02:02pm
Buying Solar at Rs 19.32 at Off Peak time rate and selling it back at Rs 35 in the evening at Peak Rate.
thumb_up Recommended (0)
M sohaib khan Oct 11, 2022 02:26pm
Nepra should make rules that domestic consumers would not b affected give units in return Large comercial units are producers not consumers there rates should b changed In any sitituation domestic users should not b affected
thumb_up Recommended (0)
M sohaib khan Oct 11, 2022 02:31pm
Domestic consumers should not be affected with rates instead large comicercial producers should be revised because they are producers not consumers while net metering consumers are repurchasing units should not b affected
thumb_up Recommended (0)
Aqueel Merchant Oct 11, 2022 02:54pm
Rooftop individuals are being harassed by NEPRA’s pettiness. They should go pick on DISCOs and IPPs and others their own size where billions of dollars have been squandered, expensive fuel which is dirty, and a circular debt which has brought the country to its knees. Rooftop solar is one line shining star which NEPRA wants to extinguish
thumb_up Recommended (0)
Nasir Raza Oct 11, 2022 04:11pm
@Feisal Ali, excellent.I think NEPRA came up with the proposal with out doing their homework and Chairman NEPRA was in the impression that he will by his beurucratic powers imposed the amendments very same day if 7 days time for comments and review would have not been there. Your point that NEPRA should speak out clearly is fully supported.
thumb_up Recommended (0)
Haroon Oct 11, 2022 08:33pm
Nepra represents everything wrong with this country. Greedy, non-sensical bureaucrats have been ruining Pakistan since independence. Trust in government is already low to the point where even our 'friendly countries' do not want to lend us money. Now government is working to eliminate the trust of the people in the government! Seems like we are on path to anarchy because at this point, trust in every institution of Pakistan will become zero.
thumb_up Recommended (0)
Anwar Faridi Oct 11, 2022 09:09pm
@Feisal Ali, Chairman NEPRA and member board of NEPRA from all provinces do not understand the trick being played by all DISCOS particularly KE. Days are not far when isolated solar power producers will not need these DISCOS.
thumb_up Recommended (0)
Nasir Raza Oct 12, 2022 07:05am
Why NEPRA is so concerned to protect the NON NETMETERING consumers at the cost of NETMETERING consumers who invested in the SOLAR EQUIPMENT to control their energy expenditure and protect the environment. DISCOS and IPPs the main culprits engage in minting money and exorbitant PROFITS in violation of their agreements where bench mark is fixed why NEPRA is reluctant to bring these matters of NATIONAL SECURITY before the public or in a court of law to protect 36 million consumers interest robbed in day light every month by way of FUEL PRICE ADJUSTMENT GST FED WHT etc and etc.
thumb_up Recommended (0)
Khalid Rahman Oct 12, 2022 07:45am
This country needs continuity of policies. These adhoc changes by NEPRA after investment is made, will continue to drive away investment in green energy. The whole world is talking about and moving towards renewal energy and providing incentives to attract investment in green energy, while our country in moving in the opposite direction. Wake up NEPRA and the Government to understand and work in national interest rather than serving the interest of vested interests.
thumb_up Recommended (0)
Moin Fudda Oct 12, 2022 08:10am
It is to the advantage of DISCOS when they purchase the units at current off-peak rate of Rs. 19.32 and sell it the neighbours at Rs. 28 or to the Solar Generator in peak hours at Rs. 34. To provide the level playing justice demands that off peak hours units are off-settled against peak hours units at a wheeling charge of 10% of the off peak rate. This policy change being will also dicourage use of the batteries and spending precious foreign exchange. If Authority wants to pass on the benefit of the savings to the 36 million consumers then firstly there is no mechanism for it and secondly according to CPPA in the month of August Net export of to XW- DISCOS by 28,000 Net Metering Consumers was 4.8 million units which at the rate of Rs. 19.32 works out Rs. 93 million. If these surplus units were to be bought at Rs. 9 then @ Rs. 10.32 difference monthly savings will work out Rs. 50 million which distributed among 36 million consumers work to Rs. 1.38 per month or Rs 17 per year only. On the other hand NEPRA Chairman is absolutely right that Net Metering should not be used as a mechanism to make profit and therefore instead of forced selling to DISCOS the surplus units be allowed to carry forward with an option to donate to mosques/churches and Not for Profit Organisations.
thumb_up Recommended (0)
Waqar Hussain Abbasi Oct 12, 2022 10:09am
There is a major difference in roof top solar production and commercial power producers. While the former installed solar panels by investing a huge cost for saving purpose, the later do it for profit. When commercial power producers sell units to DISCOS, it includes there profit as well. No rooftop solar producer do it for profit.
thumb_up Recommended (0)
Tahir Ahmed Oct 12, 2022 10:23am
NEPRA should make up it's mind whether it wants to encourage roof top solar systems for individuals or not. The big picture behooves encouragement thereby, decreasing carbon footprint and lessening burden on teetering transmission lines and commercial production of energy. One should also bear in mind that natural gas/LNG shortage will only increase in future and not decrease. Roof top solar systems can encourage usage of electricity in place of natural gas/LNG even in winters. One such winter is just round the corner.
thumb_up Recommended (0)
Tahir Ahmed Oct 12, 2022 10:36am
NEPRA must make up it's mind whether it wants to support roof top solar systems or not. Big picture behooves encouragement on the part of NEPRA not just to support decrease in carbon footprint but also as a means of lessening the burden on teetering transmission lines and commercial energy producers. It should also be borne in mind that our natural gas/LNG woes are only going to get worse. Roof top systems can encourage use of electricity in place of natural gas/LNG even during winters. One such winter is just round the corner.
thumb_up Recommended (0)
Yousafzai Oct 12, 2022 10:43am
The idea of net-metering is in infancy. If it propagates to the whole country, we would'nt need many IPPs. It is their survival, they are worried. A consumer investing in net meter had a homework to be self sufficient to generate enough for himself. The off peak and peak hour is a debate but to raise this at this point when consumers becoming net meter consumers is only a small proportion, this lobby is discouraging this by making this unattractive which is loss to the country and also to the non netmeter consumers which is using their surplus power..
thumb_up Recommended (0)
Shehzad Mir Oct 12, 2022 07:17pm
Yes kill clean energy, discourage Solar Generation, depend more on IPPs, NEPRA needs a brain scan for any malicious tumors hindering their common sense in this matter. The fact is that they are afraid of losing honest bill paying customers to solar generation, whilst trying to hide the power theft factor by remaining bill payers onto the 28k solar generation households.
thumb_up Recommended (0)
Taaha Oct 14, 2022 08:51am
@Murtaza Ahmed Ali, DISCOs are power distribution companies, not storage batteries.
thumb_up Recommended (0)
Waheed ud din Oct 16, 2022 01:31pm
In my opinion, NEPRA proposal of fix purchase price of excess units from domestic netmetering condimers at par with Slar IPPS is realistic. The basic argument is naturally why power from two power generators should be purchased at two different rates. If NEPRA failed to addressed this new coming issue, a new type of circular debt will be a challenge to national economy because DESCO will not be able to pay back cost of excesss units purchased from netmetering customers.
thumb_up Recommended (0)
Tehseen Ullah Oct 17, 2022 12:52pm
Net metering policy should not be changed for domestic cinsumers having upto 10kw load.solar energy consumers expense involved hefty amount to install solar power at their house roof top just to get financial relief in power consuming expenditure.If their relief reversed back then further growth in solar power consumers will be stopped and its negative impact will be borne by the govt discos and poor consumers.
thumb_up Recommended (0)
avenue18 Oct 24, 2022 07:28pm
I am sorry, that has interfered... At me a similar situation. It is possible to discuss. Write here or in PM.
thumb_up Recommended (0)