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ISLAMABAD: The government is mulling rationalization of buyback rates of net metering electricity to Rs 11 per unit from current rates of Rs 21 per unit, well-informed sources told Business Recorder.

“The current trend of installation of net metering across the country has misbalanced government’s plan to pay capacity charges from the consumers as rich segment is converting it to net metering,” the sources added.

There is an impression in the Power Division that whatever advantage the consumers could get they have availed it, and now damage has begun in the country’s power sector.

“Whoever is rich has money and space is shifting to net metering and now the financial burden will be passed on to poor consumers, who are already facing the brunt of hefty bills,” the sources added.

Discos’ Jan tariffs: CPPA-G seeks Rs7.13 per unit positive adjustment

The government does not want to discourage solarization in the country, but the current rate of Rs 12-22 per unit is not practicable, the sources maintained.

Consumers are recovering their investment in 18 months at the current rate. The government will reduce the current buyback rate to Rs 11 or Rs 11.50 per unit. The recovery period should be expanded to ten years, the sources maintained.

The Power Division argues that consumers have installed solar system for their own consumption and rates of additional generation should be fixed on the affordability of the receiver i.e. Discos.

The sources said solar plates of 6000 MWs have been imported as of March 31, 2024. Currently, 3000 MW of electricity is being produced through solarization.

In 2022, National Electric Power Regulatory Authority (NEPRA) initiated the process of amendments to the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015 and proposed the following amendment: In Sub-Regulation 5 of Regulation 14 of the Regulations, the word ’National Average Power Purchase Price (NAPPP)“ be replaced with ‘National Average Energy Purchase Price (NAEPP)’.

The process of amendment in the Regulations was initiated keeping in view increase in National Average Power Purchase Price (NAPPP) from existing Rs.12.95/kWh to Rs.19.32/kWh, after notification of revised consumer end base tariff by the Federal Government effective from July 25, 2022.

The proposed amendment in Regulations was published in newspapers for eliciting public opinion for a period of 30 days. The Authority, however, considering the comments received from various stakeholders and media reports conducted a public hearing in the matter on September 27, 2022.

The public/consumers, during the hearing, strongly opposed the proposed amendments and argued that electricity through net metering is one of the most efficient methods in incurring low distribution losses, with no investment for distribution infrastructure, and the proposed amendment in the Regulations would discourage net metering/solar installation.

The Authority sat on the decision for several months due to pressure from the then government and later announced that it had carefully reviewed the submissions of the stakeholders made during the hearing & in writing and is also cognizant of the vision of the government for induction of cheap and clean renewable energy into the system.

Although net metering is predominantly based on the concept of minimizing the electricity cost through rooftop solar self-generation for self-consumption and not for commercial sale and DISCOs have to maintain Grid & Generation Capacities for the Net Metering Consumers during non-solar hours as well.

However, at the same time, the economic benefits of net metering in terms of displacement of costlier electricity, savings of foreign exchange and incurring minimal losses, cannot be ignored. Moreover, the quantum of net metering units, at present is very low, ie, below 1% of the total energy purchased by DISCOs.

In view of the discussion, the Authority decided not to amend the existing NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulation, 2015.

Copyright Business Recorder, 2024


Comments are closed.

Cool boy Apr 25, 2024 09:01am
Criminal... Government is still doing dollar indexed agreements on wind and solar with foreigners but won't even pay fair share to local netmetering users.
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KU Apr 25, 2024 09:24am
Tragedy galore with Pakistan when theft of electricity is not stopped but primate solutions are put forth by saying 'solar net metering passes costs to poor '. We are now sinking faster than hope.
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Aamir Apr 25, 2024 09:50am
Constant change of Policy. If a middle class household investor does not feel safe who will want to invest in larger corporate projects in Pakistan??
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Nonsense Apr 25, 2024 10:15am
Corrupt and Thieve government. They want free electricity from people's solar setups and they pay nothing in return, and as the demand falls for power, they will keep raising the unit prices.
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Usman Apr 25, 2024 10:33am
@Cool boy, local net meetering as usual are trying to extort money.nothing more that 5 ruppee should be paid to them.Rich shoukd stop looting the poor.
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Pakistan Apr 25, 2024 11:09am
@Usman, Get a life and stop smoking ghanja, so you can have your mind working.
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Aamir Apr 25, 2024 11:46am
@Usman, It's the middle class who is effected. For the rich electricity rates do not matter. Your comment does not make any sense and how did you arrive at a RS 5 figure?
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Hmz Apr 25, 2024 12:18pm
@Cool boy, the benefit is not going to foreigners but the foreign coys owned by our big wigs like Mansha, Shahreefs, Zardatis, Tareens, etc. They're sucking the blood of poor man and getting votesalso
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Tariq Qurashi Apr 25, 2024 12:34pm
To force people to pay for capacity payments by reducing buyback rates on domestic solar power is short sighted, penny wise and pound foolish. Destroy Solar power to cover your mistakes. Well done!
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Maqbool Apr 25, 2024 12:49pm
Govt discos are losing both money & electricity. There should only be a 10 to 15% difference between Selling and buy back rates. The rest is inefficiency / corruption protected by isloo establishment
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Naeemullah Shah Apr 25, 2024 01:36pm
The government first needs to charge 50% of bills to those who are getting free electricity for doing nothing and just being Govt Employees. Then any other factor should be considered.
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ATIF MAQSOOD Apr 25, 2024 02:05pm
Government should instead negotiate with IPP's to remove capacity charges. That would benefit the broader user article can be written on that topic to bring the attention of the policy makers.
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Builder Apr 25, 2024 02:31pm
Fine. We will go off-grid. Apnay poles utar kar lay joa!
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Maqbool Apr 25, 2024 02:41pm
Why is the price of electricity different from city to city? On that bases you cant have a fixed Metering Power Rate. Totally undemocratic,will creat more fusions in the country. One rate one country
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Ch K A Nye Apr 25, 2024 02:59pm
@Usman, I'm happy to sell at PKR 5/unit if it is going directly to the poor and underprivileged rather than to the thieving government that has been thrust upon us.
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Islander mirza Apr 25, 2024 03:57pm
@Cool boy, it's bitter fact.
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Muhammad Latif Apr 25, 2024 07:42pm
Another major setback looms for solar users relying on net metering.
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Tandoor Apr 25, 2024 09:30pm
They won't recover the losses, they would not stop giving free electricity to Govt Officials, they would not stop giving subsidiary and they will shed crocodile tears for the poor.
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Ather Sheheryar Apr 25, 2024 11:11pm
Very unfair. Not all are rich. Some people have invested to lessen challenges of living in the great land.
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Ather Sheheryar Apr 25, 2024 11:12pm
Public had to pay for the inefficient wapda
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Aknclak Apr 26, 2024 12:54am
This is extremely idiotic. The govt csnt control electricity theft so it as usual does the only thing they can. They are doing the same with salary class. Time for off grid. Keep ur electricity:)
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Riz Apr 26, 2024 08:40am
Rather than encouraging anything that may save precious foreign reserve in furture our gov is discouraging things that may block there kickbacks...
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Ali Apr 26, 2024 02:37pm
No focus on trying to renegotiate capacity charges agreements which is basically robbing entire pakistan for the benefits of few at the top
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Zulfiqar Ali Apr 27, 2024 10:32am
@Usman, there is no such thing as rich and poor they DISCOS are just increasing power rates month after month without any valid reason. There profits are going down by installation of solar energy
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Orion Apr 28, 2024 02:36pm
It's not about capacity charges. We need to pay fat bills so DISCO employees can enjoy their perks and privileges. Happy citizens are bane for these kill joys.
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