ISLAMABAD: Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, has called for broader consultation on net metering, which has now reached 2,500MW and is exerting a significant impact on the national grid.
Speaking at a high-level consultative meeting held at the Private Power and Infrastructure Board (PPIB), attended by solar industry experts, provincial representatives, and relevant government officials, the Minister clarified that while net metering is not being scrapped, the government is considering transitioning to a more transparent, effective, and sustainable net billing model.
Leghari, who was instrumental in introducing net metering in 2017-18, noted that the rapid expansion of the system necessitates timely reforms. He reassured stakeholders that consumer and business interests will be protected, and any changes will be made in the national interest to ensure long-term energy stability.
He explained that the government is not pushing for electricity to be bought at minimal rates from net metering users. Instead, discussions are underway to link energy purchase rates to a dynamic pricing mechanism, enabling automatic adjustments in line with market fluctuations.
Highlighting viability, Leghari stated that a three-year payback period for solar users—particularly if they self-consume 40% of their generation—is considered a sound investment model. The proposed changes aim to balance incentives with grid sustainability.
The Minister also provided an overview of recent reforms, including the cancellation of 9,000MW of costly and unneeded projects, and re-integrating captive power users into the national grid. Since June 2024, cross-subsidies worth PKR 174 billion have led to a 31% reduction in industrial electricity tariffs, with overall consumer tariffs falling by 14–18%.
He noted that 7,000MW of surplus power is now available, which could be offered to industries and agriculture at 7 to 7.5 cents/unit without subsidy, pending IMF consultation. The initiative is aimed at optimizing supply-demand balance and driving economic growth.
Concluding, Minister Leghari emphasized that all reforms are part of a comprehensive, integrated strategy and not short-term fixes. “Now is the time to modernize Pakistan’s energy system,” he said, assuring that stakeholder input will shape a more inclusive and sustainable energy future.
