Pakistan’s power distribution companies (DISCOs) have proposed the imposition of fixed charges on solar net metering in a bid to recover losses from the shift away from the national grid.Â
As per reports, the proposal, which was discussed at a public hearing held by the National Electric Power Regulatory Authority (Nepra), aims to levy charges on electricity exported through solar net metering, with the funds going towards covering transmission and distribution costs.
During the hearing, officials from Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) argued that the increasing use of solar net metering had resulted in significant financial losses for the companies.Â
The proposal was supported by the Ministry of Energy (Power Division), which contends that consumers benefiting from solar energy are avoiding their share of capacity charges, thus burdening those still connected to the national grid.
The solar net metering issue has gained prominence as electricity tariffs in Pakistan have surged, pushing many consumers to seek alternatives. High power costs have contributed to the rising adoption of solar energy solutions, as users look for cost-effective means to meet their electricity needs.
In the ongoing discussion, the power companies are requesting Nepra’s approval to implement fixed charges on solar net metering, which would ensure the financial viability of their operations.Â
During the hearing, Nepra raised concerns about the payment process for electricity exported by solar net metering users, noting that payments to consumers are delayed and contingent on consumer applications. Officials from the DISCOs clarified that payments are adjusted quarterly but reassured that they would not expire if not claimed immediately.
Meanwhile, Nepra officials took action against Gujranwala Electric Power Company (Gepco) for installing Advanced Metering Infrastructure (AMI) without approval, as well as failing to meet deadlines for new meter installations. The regulator warned Gepco that such installations, lacking data backups, were illegal.
Mepco, on the other hand, reported a 100% recovery target for FY 2024-25 but acknowledged that a portion of the billed amounts remains outstanding, with around Rs 900 million unrecoverable each year despite ongoing efforts to collect arrears.
The proposals on solar net metering and the broader concerns about energy tariffs highlight the ongoing challenges facing Pakistan’s energy sector, as the country grapples with balancing energy consumption, grid sustainability, and the adoption of renewable energy sources.
