The Power Division has temporarily shelved its plan to rationalize the net metering tariff system, citing public pressure following recent electricity tariff hikes.Â
This decision comes despite earlier directives from the Prime Minister to finalize the reforms by multiple deadlines, most recently on September 30, 2024.
According to a news report, the Power Division communicated with the Prime Minister’s Office (PMO) to defer the net metering reforms, stating the current climate made it difficult to introduce further changes. The division, however, confirmed that the proposal is ready and will be initiated once appropriate timing is determined.
Meanwhile, institutional restructuring of the National Transmission and Dispatch Company (NTDC) continues. A committee, headed by Minister for Economic Affairs Ahad Khan Cheema, has extended the deadline for restructuring proposals to October 15, 2024.
Additionally, the operationalization of the Competitive Electricity Market awaits finalisation of wheeling charges by a cross-sectoral committee. The working group is exploring options for gradually reducing the cap on stranded costs and ensuring surplus capacity.
On other energy fronts, Power Division is pushing for accelerated development in the Thar coal sector to support the Lucky Coal Power Plant. The Sindh government has been urged to expedite financial close for mine expansion to meet a target completion date of December 2025.
The government is also exploring options for converting Chinese Independent Power Producers (IPPs) — Sahiwal, Port Qasim, and Hub China plants — to run on Thar coal. Dialogue with China began during a ministerial delegation visit in July 2024, with Chinese officials conducting assessments on-site. The conversion deadline has been set for July 2029.
