Islamabad, Mar 7, 2025: The government has submitted a revised proposal to the International Monetary Fund (IMF) delegation regarding adjustments in electricity tariffs for solar panel net metering.
Under the proposed amendments, authorities plan to acquire excess electricity produced by solar panel users at a considerably lower rate than the current purchase price, according to a leading news source.
At present, surplus electricity is bought at Rs. 27 per unit. However, the revised plan suggests reducing this amount to approximately Rs. 10 per unit.
During the review, the IMF expressed concerns about the government’s strategy for dealing with solar panel owners who operate independently of the national grid. While an official response is still pending
The IMF pointed out the rapid expansion of Net Metering solar energy installations throughout the country.
This surge, as noted by the IMF, may intensify in the coming months and years, potentially affecting the stability and efficiency of the power sector.
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The administration has underscored the necessity of restructuring electricity tariffs.
Officials disclosed that the country currently has 104 active power plants, including 18 government-operated units and 86 managed by independent power producers (IPPs).
To enhance operational efficiency, authorities have already decommissioned five underperforming power stations and renegotiated tariff agreements with 14 IPPs.
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Furthermore, tariff reductions have been secured for eight bagasse-based power producers.
Negotiations with the remaining IPPs are still in progress, according to government representatives.
Additionally, officials are considering utilizing financial leverage gained through a reduced debt servicing burden, which has eased by Rs. 1.3 trillion.
They assert that these initiatives aim to reduce baseline electricity tariffs and ensure sustainable energy pricing for consumers.
