Power distribution companies have renewed calls for introducing solar net metering fixed charges, arguing that the current system is causing heavy financial losses to the national power network.
During a public hearing held by the National Electric Power Regulatory Authority (Nepra), Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) requested approval to impose fixed charges on consumers who export electricity to the grid through solar systems. The proposal was supported by the Ministry of Energy (Power Division) as well.
According to the companies, a growing number of households and businesses are shifting to solar net metering due to expensive electricity tariffs. This shift has reduced the number of consumers relying fully on the national grid, which, the companies claimed, is shifting capacity payment burdens onto those still buying grid electricity.
Earlier, the government proposed revisions to the net metering policy, including reducing the buyback rate. However, the move led to strong public reaction, after which Prime Minister Shehbaz Sharif held back the policy change.
Nepra held separate hearings for the multi-year tariff petitions of both Gepco and Mepco for FY 2025-26 to FY 2029-30. During the session, the regulator also questioned delays in meter installation and raised concerns about Gepco installing advanced meters without prior approval.
Officials from the Power Division noted that high electricity prices have lowered national demand, which has caused surplus LNG supplies to go unused. The government recently introduced an incentive scheme offering lower rates on additional electricity consumption to discourage further shifts toward solar power.
Mepco, while claiming to meet its annual recovery target, acknowledged that a portion of billed amounts typically remains pending and is collected in later months. The company also highlighted that around Rs900 million turns irrecoverable each year despite disconnections and legal action.
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The debate over solar net metering fixed charges is expected to continue as Nepra reviews all submissions before making a final decision
