The government is considering reducing buyback rates for net metering electricity, potentially lowering them from the current Rs. 21 to Rs. 11 per unit.
This move comes amidst Power Division concerns that the surge in net metering installations, primarily by wealthier consumers, has disrupted the government’s plans to pay off capacity charges, reported Business Recorder.
The Power Division is of the view that consumers have already benefitted a lot from the facility, and now the power sector has started declining.
The transition towards net metering by wealthier people is shifting the sector’s financial burden onto poorer consumers. While the government remains supportive of solar energy adoption, it feels that the current buyback rates are unreasonable.
As of March 31, 2024, approximately 6000 MW of solar panels have been imported which helped generate 3000 MW of electricity.
In 2022, the National Electric Power Regulatory Authority (NEPRA) proposed amending the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015 to accommodate the increased national average power purchase rate of Rs. 19.32 per unit.
Despite opposition from stakeholders and consumers, NEPRA ultimately decided against the amendments. The regulator recognized its role in minimizing electricity costs, reducing foreign exchange expenditure, and minimizing losses, while affirming its alignment with the government’s vision of integrating affordable and clean renewable energy sources into the energy system.
One is amazed at the arguments of the Power Division. Did the govt not benefit from buying a cheaper rate? what about consumers who are currently purchasing solar currently? How will they benefit from a drastic rate cut? Directionless and clueless fit adaptly at the current power division. Out to bring down solar power in the country
For solar system installation please contact Mr Zain at 0320 2250786 Ex FSD.
Govt is finding buying electricity at 21rs as extremely expensive, whereas they themselves are selling electricity at about 50rs to customers. Looks like all policies in Pakistan are anti-people.
Reducing net metering buyback will be another nail in wapda coffin. There are more and more people as well as industries shifting to hybrid inverter production for daytime reducing load on grid. Govt should discontinue the contract with IPPs for country favour and reduce the per unit price for consumers using up to 600 units per month. Protected consumer slab of 200 units is a joke in 2024.
Instead of trying to renegotiate capacity charges agreements they are going after consumers. Bad decision. People will simply switch to hybrid further reducing dependence on wapda
Agriculture
This is excellent scheme
Decision makers should have enough wisdom, knowledge and foresight to make right decisions that benefit public at large.
Moreover, decision makers should not be beneficiary of the decisions. In this case, all efforts are being made to preserve the interests of IPPs, not the country or general public