NA Panel Criticises Nepra Over Net Metering Shift, Warns of Investor Confidence Erosion

Net-Metering

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) faced strong criticism from lawmakers on Monday over its recent decision to replace net metering with net billing for solar consumers, with parliamentarians warning that the move could undermine investor confidence and damage the government’s credibility.

The issue was raised during a meeting of the National Assembly Standing Committee on Industries and Production, chaired by MQM MNA Syed Hafeezuddin. Committee members questioned the rationale behind the abrupt policy shift, arguing that it could “shatter the trust of investors in government policies”.

Earlier this month, Nepra revised the terms for both existing and future rooftop solar consumers, citing the need to manage growing solar penetration and protect the financially strained state-owned power network. However, lawmakers expressed concern that the regulator had altered contractual arrangements without sufficient consultation or a comprehensive study.

The committee chairman stated that if the government could honour long-term commitments made to independent power producers, it should also respect agreements with industries and individuals who invested in solar systems under the net metering framework.

Industrial units, he noted, made substantial investments in renewable energy in response to government incentives but have now been left uncertain under the new net billing regime. Members of the committee, along with the secretary of industries, warned that such policy reversals could discourage adoption of clean technologies and weaken Pakistan’s transition to sustainable energy.

“Pakistan needs to promote solar and other clean energy solutions for industries to reduce the long-term cost of doing business,” the chairman observed, adding that the basis for the policy change did not appear to rest on a rational study by the Power Division.

Beyond the energy debate, the committee also reviewed development projects under the Ministry of Industries. Several projects were questioned over delays, cost escalations, and incomplete documentation. Lawmakers demanded monitoring reports from the Planning Commission, expressing frustration over six- to nine-year project delays and insufficient briefing details.

Members including Abdul Hakeem Baloch, Shahid Usman, and Dr. Mehreen Bhutto challenged official claims regarding projects in Hub, Karachi, and Gujranwala, citing discrepancies between field realities and departmental reports. Concerns were also raised over departments opting to acquire new land and construct buildings instead of utilising assets of non-functioning state-owned enterprises.

The committee additionally discussed the case of former Engineering Development Board employee Engineer K.B. Ali, who has obtained a stay order from the court after being transferred to his parent department.

The meeting concluded with a call for greater transparency, policy consistency, and accountability — particularly in areas affecting industrial investment and the country’s clean energy ambitions.

Story by Kalbe Ali

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