Prime Minister Shehbaz Sharif has directed the National Electric Power Regulatory Authority (NEPRA) and the Power Division to revise net metering rules to rationalize buyback rates.
During a recent meeting with the Prime Minister, the Power Division raised concerns about the financial impact of widespread net metering by consumers, leaving the ministry with no option but to reduce the buyback rates to Rs. 11-12 per unit, as reported by Business Recorder.
The International Monetary Fund (IMF) is also pressing for full-cost recovery of electricity from consumers.
The meeting concluded that the Power Division would refine and present a summary to convert the net metering regime to gross billing, establish a separate tariff category, revise buyback rates, amend net metering regulations, and develop a dynamic formula for a reasonable payback period.
Following the discussions, the Prime Minister instructed the Power Division and NEPRA to approve the necessary amendments to net metering regulations, with final recommendations to be completed by May 31, 2024.
This decision comes as a significant number of electricity consumers have adopted solar power to avoid load shedding and high electricity costs. The industrial and commercial sectors are also increasingly shifting towards solar energy.
The rise in net metering has raised alarms within the Power Division and distribution companies, whose revenues have been declining. The Power Division reported that solar panels capable of generating 6,000 MW were imported in the first nine months of the current fiscal year.
