ISLAMABAD: The Power Division on Friday said it was working on a plan to rationalize peak electricity tariffs for the industrial sector, which will be presented to the National Electric Power Regulatory Authority (Nepra), as high power prices remain the main concern for industry.
This was disclosed by the Additional Secretary Power Division (Power Finance) during a public hearing on the NEPRA (Prosumer) Regulations, 2025, which aim to shift the existing net-metering regime to net-billing for solar consumers.
The hearing was presided over by Nepra Chairman Waseem Mukhtar, along with Member (Development) Maqsood Anwar Khan and Member (Tariff and Finance) Amina Ahmed.
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More than a dozen stakeholders and consumer representatives, including Nadeem Afzal Chan (PPP), Waqas Musa of the Pakistan Solar Association, KE representatives, KCCI’s Tanveer Barry, Moin Fuda, Rehan Jawed, Aamir Sheikh, HumayunSaifullah, Irfan Rafiq Butt of GEPCO, Arif Bilwani, Akhtar Awan, Ameena Sohail of IPS, and others, shared their views on the proposed mechanism.
The representative of the Power Planning and Monitoring Company (PPMC), Naveed Qaiser, briefed the Authority and participants that Pakistan’s clean energy transition has accelerated due to increased reliance on renewable energy and reduced dependence on imported fuels.
He said the country’s clean energy mix, which stood at 40 percent in 2015, had risen to 55 percent in 2025 and is projected to reach 90 percent by 2034. On-grid rooftop solar capacity surged from 5 MW in 2017 to 6,975 MW currently and is expected to reach 14,319 MW by 2034. Off-grid solar capacity has exceeded 13,000 MW and is projected to reach 18,944 MW by 2034.
Qaiser highlighted that the rapid growth of distributed solar is creating grid challenges, including system stress, duck curve effects, steep ramps, voltage and back-feed issues, and grid instability. He noted that low winter demand of around 6,000–10,000 MW leads to curtailment of grid renewables and increased operational costs.
He further stated that with 73 percent fixed costs in consumer end-tariffs and declining grid sales, net-metering shifts the financial burden to non-solar consumers. According to him, off-grid and hybrid solar users inflate the protected consumer base, distort subsidies, increase cross-subsidization, and weaken industrial and commercial competitiveness.
Under the proposed regulations, the installation limit would be reduced from 1.5 times the sanctioned load to one times the sanctioned load (up to 1 MW). The contract period would be reduced from seven years to five years, net-metering would be converted to net-billing, the credit settlement period would shift from quarterly to monthly, and the buyback rate would be set at the Power Purchase Price of Rs 25.32 per unit. Electricity for new consumers would be purchased based on the Energy Purchase Price.
Responding to a query, Qaiser said that the four percent of consumers currently using net-metering are imposing a burden of Rs 2.87 per unit on consumers without solar systems. He added that if Nepra approves the proposed regulations, non-solar consumers would receive relief of about Rs 0.87 per unit initially, with further relief expected after one year.
Mehfooz Bhatti stated that the cumulative financial impact of net-metering on non-solar consumers stands at Rs 300 billion.
An official from the Independent System and Market Operator (ISMO) highlighted grid vulnerabilities during peak periods, warning that the system becomes highly vulnerable during Eid holidays when industrial activity shuts down.
PPP’s Nadeem Afzal Chan alleged corruption by DISCOs in delaying net-metering installations despite clear regulatory directives, warning that his party would challenge any adverse decision by Nepra in court.
A power sector expert proposed encouraging solarization while imposing a Rs 10,000 fee on net-metering consumers to compensate other users. Dr Khalid of SDPI suggested modernizing the grid instead of discouraging solar adoption.
Rehan Jawed argued that if the government purchases electricity at Rs 10 per unit while paying Rs 25.32 per unit, it should also announce a discount of Rs 2.87 per unit for consumers.
Several experts challenged PPMC’s data, alleging inaccuracies, and suggested third-party verification of DISCOs’ figures.
On complaints that DISCOs had halted new net-metering connections, Chairman Nepra warned that the Power Division must take action or Nepra would initiate legal proceedings.
Arif Bilwani questioned whether the Power Division or PPMC could guarantee that the new regulations would resolve all sectoral issues.
KCCI’s Tanveer Barry warned that changes to net-metering would adversely affect green energy. He said DISCOs and KE sell electricity at Rs 55–60 per unit while purchasing solar power at around Rs 11 per unit, calling it unjustified. He blamed poor government policies and heavy capacity payments, adding that policy changes would push consumers toward battery usage, increasing imports and burdening foreign exchange reserves. He also noted that the recently imposed 10 percent sales tax has already discouraged solar adoption, while industry has adjusted electricity costs through net-metering.
Former Senator Nauman Wazir supported the proposed regulations and sought clarification on whether the Rs 2.87 per unit relief would be extended to the industrial sector.
Copyright Business Recorder, 2026
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