The government has presented a plan to the International Monetary Fund (IMF) to revise electricity tariffs for solar panel owners using net metering. The proposal includes purchasing surplus electricity generated by solar users at a significantly reduced rate, lowering it from the current Rs27 per unit to approximately Rs10 per unit, The News reported.
The IMF has raised concerns about how the government intends to address solar panel owners who remain off-grid. While no firm commitment has been made, the global lender pointed to a rapid rise in solar installations, warning that the trend could pose challenges to the efficiency of the power sector in the coming years.
At the same time, the government has outlined broader plans to rationalise power tariffs. Of the 104 power plants operating nationwide, 18 are state-owned, and 86 are independent power producers (IPPs). The government has already decommissioned five inefficient plants and renegotiated tariffs with 14 IPPs, along with securing reductions for eight bagasse-based IPPs.
Officials also revealed that ongoing negotiations with the remaining IPPs are expected to further reduce costs. Additionally, the government is considering utilising the Rs1.3 trillion fiscal space created by lower debt servicing obligations to help lower baseline electricity tariffs. These measures are part of broader efforts to restructure the power sector while addressing IMF concerns.
