AVN 51.24 Increased By ▲ 2.18 (4.44%)
BAFL 28.67 Increased By ▲ 0.12 (0.42%)
BOP 3.62 Decreased By ▼ -0.01 (-0.28%)
CNERGY 3.27 No Change ▼ 0.00 (0%)
DFML 10.74 Decreased By ▼ -0.06 (-0.56%)
DGKC 52.60 Increased By ▲ 0.62 (1.19%)
EPCL 43.90 Increased By ▲ 0.30 (0.69%)
FCCL 12.41 Decreased By ▼ -0.01 (-0.08%)
FFL 6.20 Increased By ▲ 0.04 (0.65%)
FLYNG 5.99 No Change ▼ 0.00 (0%)
GGL 10.30 Increased By ▲ 0.04 (0.39%)
HUBC 68.66 Increased By ▲ 0.16 (0.23%)
HUMNL 5.84 No Change ▼ 0.00 (0%)
KAPCO 22.60 Decreased By ▼ -0.05 (-0.22%)
KEL 1.84 Increased By ▲ 0.01 (0.55%)
LOTCHEM 29.50 Increased By ▲ 0.60 (2.08%)
MLCF 28.70 No Change ▼ 0.00 (0%)
NETSOL 81.35 Increased By ▲ 4.45 (5.79%)
OGDC 79.90 Increased By ▲ 1.50 (1.91%)
PAEL 9.76 Increased By ▲ 0.09 (0.93%)
PIBTL 4.31 Increased By ▲ 0.10 (2.38%)
PPL 61.65 Increased By ▲ 1.16 (1.92%)
PRL 14.43 Decreased By ▼ -0.05 (-0.35%)
SILK 1.10 Increased By ▲ 0.04 (3.77%)
SNGP 42.98 Increased By ▲ 0.48 (1.13%)
TELE 7.22 Increased By ▲ 0.12 (1.69%)
TPLP 13.21 Increased By ▲ 0.44 (3.45%)
TRG 99.00 Increased By ▲ 2.87 (2.99%)
UNITY 15.40 Increased By ▲ 0.17 (1.12%)
WTL 1.19 Increased By ▲ 0.01 (0.85%)
BR100 4,190 Increased By 29.8 (0.72%)
BR30 14,589 Increased By 182.3 (1.27%)
KSE100 41,904 Increased By 217.8 (0.52%)
KSE30 14,804 Increased By 61.5 (0.42%)
Follow us

ISLAMABAD: The Competition Commission of Pakistan (CCP) has welcomed the decision of the National Electric Power Regulatory Authority (Nepra) to retain the existing Nepra (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulation, 2015.

The decision comes after Nepra proposed amendments to the net metering regulations, which raised concerns over state of competition.

The proposed amendments would have replaced the National Average Power Purchase Price (NAPP) with the National Average Energy Purchase Price (NAEPP), resulting in a decrease in the amount payable to distributed generators/ prosumers (consumers/ customers who both produce and consumes electricity).

The CCP had reservations over the proposed amendments and conveyed its concerns to Nepra in Nov 2022. Nepra assured to give due consideration to all stakeholders’ views before reaching a decision on the proposed amendments.

The Competition Act, 2010, mandates the CCP to review policy frameworks for promoting competition and making suitable recommendations for amendments to any law affecting competition in Pakistan to the government. The CCP noted that the proposed amendments would have been detrimental to the distributed generators/prosumers, who made investments in solar systems based on policy provisions, agreement with their respective DISCOs, and a license from Nepra.

After receiving concerns from various sources, the CCP highlighted it to the Nepra that Pakistan's energy sector heavily relies on costly imported fuels with thermal power dominating the energy mix and renewables contributing very little. Despite the savings from distributed generation, rising international oil prices, inefficiencies in DISCOs, limited fiscal space, and global renewable energy efforts contradict Nepra's proposed amendments. Nepra in its decision dated Feb 10, 2023, has recognized the advantages of net metering, including displacement of expensive electricity, savings in foreign exchange, and minimal losses.

The proposed amendments would have also placed distributed generators/prosumers at a disadvantage compared to other generation companies and IPPs. Moreover, DISCOs would have purchased electricity units from distributed generators at Rs. 9/kWh (existing rate is 19.32kWh) and sold them back to end consumers on the grid at a significant mark-up. However, Nepra's recent decision would result in equal treatment of all players in the sector.

The CCP supports Nepra's decision and looks forward to continued collaboration to promote competition, fair play, and equal treatment for all the players in the sector.

Copyright Business Recorder, 2023


1000 characters

CCP welcomes Nepra’s decision on net metering rules

Federal cabinet meeting approves Budget 2023-24

Cyclone Biparjoy: Climate minister says conditions supporting system may intensify

Migrants in UAE, including Pakistanis, turn to crypto to send remittances home

Ali Muhammad Khan re-arrested in Mardan shortly after being discharged from vandalism case

KSE-100 rises 0.52% ahead of budget announcement

Global LNG: Asian spot prices flat on limited demand, ample spot supplies

Blinken to visit China for talks next week: report

Kremlin says US can’t tell Saudi Arabia what to do on oil policy

Britain sets price floor on oil and gas windfall tax

Trump faces federal charges in classified documents case, adding to legal woes