Net metering consumers: PD presents buyback rate cut mechanism to prime minister

ISLAMABAD: The Power Division has reportedly presented a mechanism to Prime Minister Shahbaz Sharif to reduce buyback rates of net metering consumers aimed at saving other domestic consumers from the brunt of exorbitant rates due to increasing capacity charges, well-informed sources told Business Recorder.

“The proposal which is at the initial stage was placed before the Prime Minister on April 25, 2024. The rate of tax as quoted in the media is far from reality. No summary has been sent to the Prime Minister,” the sources added. The proposal to contain or discourage net metering is part of about 40 new proposals to save the country’s power sector from total collapse. However, no official is ready to share details of the government’s plan.

On Saturday, in a statement, the Power Division stated there is no truth in the news of solar power fixed tax. The Central Power Purchasing Agency or the Power Division has not sent any such summary to the government in this regard.

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The Power Division said the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system. Solarisation however has increased very rapidly.

The Power Division further stated that such proposals and amendments are being considered to save the poor from further tariff burden.

According to the announcement of the Power Division, wealthy people are installing solar panels in abundance due to which financial burden of Rs 1.90 per unit is being put on domestic and industrial consumers and the government in the form of subsidy.

The Power Division argues that due to massive solarization in the country, Rs 1.90 per unit is being transferred to the rich from the pockets of the poor and middle class consumers.

“If current trend continues in the next two years, bills of up to 30 million will be paid by poor consumers whose tariff will increase by Rs 3.35 per unit in the next two years,” said Power Division.

According to the statement, the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system. However, after 2017, solarization has increased rapidly which needs to be balanced.

Power Division further claimed that Solarization Policy 2017 required amendments and alteration in rates over time, which unfortunately could not be implemented.

“We are studying the entire system and reviewing it closely and are considering suggestions and amendments to save the poor consumers from further burden as well as protection of investment of 0.2 million net metering consumers,” said Power Division.

Copyright Business Recorder, 2024