Govt Considers Lowering Net Metering Buyback Rates Amidst Power Sector Concerns


Reports from Business Recorder suggest that the government is contemplating reducing the buyback rates for net metering electricity from Rs 21 per unit to Rs 11 per unit. This move comes as the surge in net metering installations has disrupted the government’s capacity charge payment plans, sources reveal.

The Power Division is concerned that affluent consumers are shifting to net metering, leaving the financial burden on less privileged consumers already grappling with high bills. While the government supports solarization efforts, the current buyback rates of Rs 12-22 per unit are deemed unsustainable.

At the current rates, consumers recover their investment within 18 months. The government aims to extend the recovery period to ten years by lowering the buyback rates to Rs 11 or Rs 11.50 per unit. However, the Power Division argues that rates should align with the affordability of Distribution Companies (Discos).

Despite the pressure for amendments, NEPRA decided not to change existing regulations, acknowledging the benefits of net metering in reducing costs and promoting renewable energy.

Story by Mushtaq Ghumman

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