283,000 existing net metering consumers will remain under current contracts until expiration: Leghari

Minister for Power Division, Sardar Awais Ahmed Khan Leghari assured the Senate Standing Committee on Power Division that existing net metering consumers would continue under their current contracts until they expire. 

The committee, chaired by Senator Mohsin Aziz, was further informed that consumers who installed solar panels without net metering would remain unaffected.

The minister stated that the Economic Coordination Committee (ECC) had approved the policy, but cabinet approval was still pending. He emphasised that changes to the solar policy were necessary to prevent the government from purchasing expensive electricity at public expense, though import duties on solar panels would remain unchanged.

Leghari mentioned that, currently, 283,000 solar consumers generate 4,000 MW of electricity. The new policy aims to lower solar system costs, making solar energy more accessible. 

The committee also discussed the new net metering policy, under which the government will buy electricity from new solar consumers at Rs. 10 per unit, down from Rs. 27. However, electricity consumed between 6 PM and 10 PM will be charged at Rs. 45 per unit. Without this policy, electricity prices could rise by Rs. 3.50 per unit.

The committee was also briefed on the procurement of the Narowal Coal Power Plant, allegedly purchased at the rate of Rs. 75,000 per ton, while the market price of coal is Rs. 40,000 per ton. However, it was clarified that the issue involved the Sahiwal Coal Power Plant, not Narowal, and that the Sahiwal plant is not a government-owned Independent Power Producer (IPP). 

The committee expressed concern over the incorrect information and requested a detailed report to ensure transparency and accountability.

Additionally, the Ministry of Energy provided an update on the ongoing negotiations with IPPs, discussing expected relief for the public and industrialists. Revised agreements for tariff reductions have been signed with eight Bagasse Power Plants and 14 IPPs under the Power Policy of 1994 and 2002. The early termination of five IPPs is expected to save approximately Rs. 411 billion. The revised tariffs for Bagasse Power Projects and IPPs are projected to save Rs. 238 billion and Rs. 922 billion, respectively, over the remaining life of these projects.

The committee chairman expressed concern over delays with the remaining 75 IPPs, questioning the slow progress despite the formation of a dedicated Task Force. He emphasized the need for swift action to ensure timely relief for the public and businesses.

The Ministry confirmed that negotiations with each IPP were being conducted individually, a process that requires time. However, they assured the committee that the process is expected to be completed by April or May, with a likely finalization by the last week of April. The committee has requested detailed information on the commencement dates, final prices, and local manufacturing costs for the plants.

The meeting was attended by Senators Syed Shibli Faraz, Mir Dostian Khan Domki, Manzoor Ahmed Kakar, Haji Hidayatullah Khan, Asad Qasim, Minister for Energy (Power Division) Awais Leghari, and other concerned officials.