Power Minister Explains Why Solar Benefits Have Been Reduced in Pakistan

Federal Minister for Power Awais Leghari on Tuesday defended recent changes to solar net metering regulations in the Senate, saying that the adjustments were regulatory rather than policy-based and intended to protect electricity consumers from additional financial burden.

The minister clarified that the National Electric Regulatory Authority’s (NEPRA) primary responsibility is to safeguard consumer interests and prevent undue increases in electricity prices. He noted that NEPRA had not altered any clauses previously agreed upon with consumers, and all existing seven-year net metered contracts remain intact.

Leghari said the Pakistan Solar Association (PSA) has supported the government’s measures and despite the changes, solar power generation is expected to increase by 8,000 megawatts.

The minister attributed high electricity prices during the 2018-22 government to the sharp depreciation of the rupee, which created challenges the current government is now managing. He added that the net metering mechanism was approved by the federal cabinet and that Pakistan has achieved a target of 55 percent clean energy in its power mix.

He also mentioned the near elimination of furnace oil from the national grid and that international institutions have endorsed the Shehbaz Sharif government’s power sector reforms.

Regarding independent power producers (IPPs), Leghari said the government had reviewed contracts and made appointments based on merit rather than political recommendations, taking firm decisions without yielding to pressure from influential stakeholders.

Presenting consumer data, he noted that out of 34.5 million electricity users, only 466,000 are net metering customers. He added that allowing NEPRA to purchase electricity at Rs. 26 per unit would have imposed an annual burden of Rs. 550 billion on ordinary consumers.

Leghari confirmed that under NEPRA’s approved rates, new consumers can recover their investment within three years. He concluded that failure to revise the regulations would have increased costs for ordinary consumers by Rs. 5 per unit.