ISLAMABAD – As people in Pakistan are waiting for revision of net metering rates, Prime Minister Shehbaz Sharif issued new orders to National Electric Power Regulatory Authority (NEPRA) and Power Division to adjust the buyback rates of electricity to more rational levels.
Sources familiar with the development said a recent high-level meeting was chaired by the Prime Minister and was attended by senior officials, focused on the increasing adoption of solar energy among consumers.
This shift is driven by factors such as persistent load shedding and high electricity costs, leading to a growing number of consumers, including affluent households and industrial and commercial sectors, opting for solar solutions.
The recent trend raised concerns about its impact on the revenue streams of Power Distribution Companies (Discos), leading to discussions with international bodies like the World Bank, Asian Development Bank (ADB), and International Monetary Fund (IMF) regarding the need for full cost recovery in the electricity sector.
Asian Development Bank lately highlighted concerns from Power Division about the financial impact of net metering on Discos and indicated its intention to primarily target off-grid areas in its programs, while continuing to consult with the Power Division.
Power Division proposed new buyback rates for surplus solar power, significantly lower than current rates. The meeting also addressed the substantial import of solar panels, particularly from China, due to their cost-effectiveness.
Sindh Energy Department also sought ADB’s support for various solar energy initiatives in rural and flood-affected areas. The meeting concluded with resolutions to rationalize the net metering framework, transitioning from net metering to a gross billing system with separate rates for power import and export, revising buyback rates, amending regulations, and implementing a dynamic formula for payback periods.
