Prosumers seek reasonable transition period for net-metering regime

ISLAMABAD: Former Minister for Interior Lt Gen Moin ud Din Haider (retd) has filed a review petition with the National Electric Power Regulatory Authority (NEPRA) on behalf of more than 100 net-metering prosumers, seeking a defined and reasonable transition period for the net-metering regime to safeguard those who have already arranged financing for rooftop solar installations.

In a letter addressed to the Registrar Nepra, with copies sent to the Prime Minister, the Power Minister and other relevant authorities, Haider referred to the draft SRO uploaded on Nepra’s website for public comments.

He sought clarity on whether, in addition to providing the Net Annual Purchase Power Price (NAPPP) for export of surplus units during the validity of existing licences, the earlier proposed Clause 20 of the Prosumer Regulations titled “Saving and Repeal” would stand deleted, and whether continuity of the policy permitting netting of units during peak and off-peak hours would remain in effect until expiry of the respective licences.

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The cited clause states: “Notwithstanding the repeal affected by these regulations, nothing shall affect or be deemed to affect the licence issued and agreement executed under the repealed regulations before commencement of these regulations, except that billing shall be in accordance with Regulation 14 commencing from the billing cycle subsequent to the month in which these regulations come into effect.”

The petition notes with “deep regret” that, contrary to established practice — whereby decisions are first announced and signed by members present, followed by circulation of minutes and then formal notification — the notification in the present case was issued with unusual haste on the very next working day, apparently through verbatim reproduction of the draft regulations.

Among other concerns, the petition argues that the event did not appear to be a public hearing in the true sense but rather resembled a courtroom proceeding. It states that a hurried PowerPoint presentation gave the impression of a “charge sheet” against nearly half a million net-metering consumers, portraying them as a financial burden on 37 million on-grid consumers. However, it claims no empirical data was presented to substantiate these assertions. Instead, long-term projections were reportedly shown suggesting that continuation of net metering would impose significant costs.

A participant questioned why similar long-term projections were not presented before the Cabinet when 25-year contracts were awarded to IPPs, resulting in heavy capacity payments and procurement of electricity from solar IPPs at indexed rates of Rs 49 per unit. The petition states that several such questions remained unanswered.

Humayun Saif Ullah Khan, who attended the proceedings, presented a copy of Haider’s letter to the Prime Minister outlining broader policy concerns.

In response to a query regarding anticipated savings from implementation of the Prosumer Regulations, officials of the Power Division reportedly stated that savings would amount to Rs 2.77 per unit. Industry representatives requested that this benefit be passed on to consumers, but the request was declined without explanation, the letter claims.

The petition further highlights the absence of discussion on the positive environmental impact of rooftop solar installations, including reduction in CO2 emissions, lower reliance on imported fossil fuels and improved air quality. It questions whether the Ministry of Climate Change and Environmental Coordination was invited to present its perspective, given Pakistan’s climate commitments and energy transition goals.

It also points out that, out of Nepra’s five-member strength, two positions representing Sindh and Balochistan were vacant at the time of the hearing. To complete quorum, a member from Punjab — who had already served a four-year term as Member (Legal) — was reappointed for a further three-year term as Member (Finance and Tariff) on the morning of February 6, the day of the hearing. The newly appointed member reportedly directed at the outset that no alternate proposals be placed for consideration.

According to the petition, several stakeholders who joined the hearing via Zoom were not given the opportunity to speak, limiting meaningful participation.

“Had participants not been restricted from placing alternative proposals, one logical and balanced suggestion would have been to set a clear and reasonable deadline for the conclusion of the net-metering regime — either until expiry of the last licence already issued or up to June 30, 2030. Such an approach would ensure that all existing licences and contracts are honoured, while also allowing prospective entrants to install rooftop solar systems with certainty,” the petition states.

While the Power Minister has announced that net-metering applications submitted up to February 9, 2026, will be accepted, the petition argues that hundreds of middle-class consumers who have already saved to install rooftop solar systems may be deprived of the opportunity. A transparent and time-bound phase-out, it contends, would better serve fairness, predictability and regulatory consistency.

In the interest of fairness, transparency and due process, Haider requested Nepra to treat the letter as a review petition and consider recommending to the government a defined and reasonable transition period for the net-metering regime.

Alternatively, the Authority may defer implementation of the earlier notification and convene physical public hearings in the capitals of all four provinces — similar to the recent practice of Oil and Gas Regulatory Authority (OGRA) — to ensure broader stakeholder participation, reinforce public confidence in Nepra’s independent regulatory process and uphold principles of transparency and inclusive consultation.

Copyright Business Recorder, 2026