ISLAMABAD: Power distribution companies (DISCOs) have urged the National Electric Power Regulatory Authority (Nepra) to impose fixed charges on solar net metering consumers, arguing that the growing shift toward solar energy is eroding their revenues and increasing the financial burden on grid-connected users.
During Nepra’s public hearings on Tuesday — held to review the multi-year tariff petitions of Gujranwala Electric Power Company (Gepco) and Multan Electric Power Company (Mepco) for FY2025-26 to FY2029-30 — both companies proposed levying fixed charges equivalent to transmission and distribution costs on units exported by solar consumers. The Power Division backed the proposal, claiming that net metering consumers had effectively exited the grid while capacity charges were being unfairly shifted to non-solar users.
This is not the first attempt to alter Pakistan’s solar net metering framework. Minister for Power Awais Ahmad Leghari previously sought to replace the existing system with a new policy reducing the buyback rate to Rs10 per unit and ending unit exchange — a move blocked by Prime Minister Shehbaz Sharif following public backlash.
Energy experts, however, argue that high power tariffs are the real cause behind the exodus from grid electricity. Rising costs have forced industries and households to adopt solar, slashing electricity demand and worsening a glut in the gas and LNG sector.
Despite the push for fixed charges, the government recently unveiled a three-year discounted electricity scheme to encourage higher grid consumption and slow the migration to solar.
During the hearings, Nepra also warned Gepco for illegally installing Advanced Metering Infrastructure (AMI) without regulatory approval or proper data backup. Gepco further faced criticism for delays in installing new meters, with pending applications exceeding two months.
Mepco reported achieving 100% recovery targets for FY2024-25, though some dues were cleared after the fiscal year’s close. The company admitted that around Rs900 million remains irrecoverable annually despite legal efforts.
Nepra has yet to issue a ruling on the proposed fixed charges on solar net metering, but the move has already sparked concern among consumers and renewable energy advocates who see it as a step backward in Pakistan’s clean energy transition.
Story by Zafar Bhutta
