Gov’s New Net-Billing Plan Cuts Solar Benefits by 68%: OICCI

The Overseas Investors Chamber of Commerce and Industry (OICCI) has raised concerns over the revised net billing framework, stating that recent changes have significantly reduced financial incentives for solar consumers while failing to address structural inefficiencies in the power sector.

In a statement, OICCI noted that although Lahore and Multan together account for more than one-third of Pakistan’s net metering consumers, the revised framework has slashed the solar electricity buyback rate to Rs. 8.13 per unit, a 68 percent reduction from previous levels.

As a result, urban prosumers are now required to export nearly seven units of electricity to offset the cost of importing one unit during peak hours.

The chamber highlighted that net metering users contribute only 0.32 percent to total grid energy, yet have been subjected to stricter pricing measures. This comes at a time when power distribution companies are grappling with losses exceeding Rs. 399 billion. According to the data cited, total theft-related losses in the system have reached Rs. 734 billion, largely driven by systemic inefficiencies and declining industrial demand.

OICCI stated that the growing gap between low export credits and high retail import tariffs effectively forces solar households to absorb part of the financial burden stemming from inefficiencies in the power distribution system.

To address these challenges, the chamber recommended mandating hybrid battery storage systems to help shift peak demand, accelerating the deployment of Advanced Metering Infrastructure (AMI) and Supervisory Control and Data Acquisition (SCADA) systems for real-time monitoring and theft control, and ensuring that installed solar capacity is aligned with sanctioned load to safeguard distribution networks and maintain grid stability.