ISLAMABAD: The government is exploring a reduction in net metering rates for new contracts to alleviate the growing financial burden on electricity consumers, as revealed by Federal Minister for Power Owais Leghari in a post on X (formerly Twitter).
Introduced in January 2018 during the tenure of Prime Minister Shahid Khaqan Abbasi, the net metering scheme has supported over 283,000 users. However, it has also imposed a Rs150 billion financial burden on other consumers, who are contributing an extra Rs1.5 per unit to subsidize the profits of net metering participants.
To address these challenges, the proposed rate cut will only apply to new agreements, leaving existing contracts unchanged.
Leghari assured that despite the reduction, new users would still be able to recover their investment within a 4 to 5-year period, keeping net metering an attractive option for those looking to invest in renewable energy.
This move aims to strike a balance between promoting renewable energy and shielding the 40 million electricity consumers from escalating costs.
