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Implementation of Net Metering to Net Billing Policy Suspended: Awais Leghari

Net Metering to Net Billing Policy Suspended: Owais Leghari

Islamabad: Federal Minister for Energy Awais Leghari informed the National Assembly on Thursday that the government has suspended the implementation of the policy aimed at transitioning from net metering to net billing.

Defending the existing net metering framework during a parliamentary session, the minister said the government had carefully reviewed the impact of proposed regulatory changes.

Leghari stated that across the country, approximately 466,000 consumers are currently using net metering. According to him, these consumers are earning up to 50 percent annual returns on their investment. He explained that electricity produced at around Rs5 per unit is being sold to the national grid at Rs27 per unit.

He warned that if electricity continues to be purchased at the same rate under net metering, power tariffs for the remaining 90 percent of grid consumers could increase by Rs2 to Rs2.50 per unit.

The minister said shifting to net billing would reduce returns for net metering consumers to around 37 percent, while electricity prices for other consumers could decrease by Rs1 to Rs1.50 per unit. He rejected claims that the new regulations would negatively impact low-income households.

Addressing concerns circulating on social media, Leghari noted that the regulator has amended net metering regulations five times in the past. He added that around 6,000 to 7,000 large solar consumers are part of the net metering system, with approximately 2,200 megawatts installed by industrial users.

He further claimed that most solar installations are located in affluent areas, stating that the primary beneficiaries of net metering are members of the upper-income segment.

Separately, the minister said the government has reduced circular debt by Rs780 billion within one year. He also revealed that Rs100 billion was deducted from an Independent Power Producer (IPP) reportedly linked to a relative of Prime Minister Shehbaz Sharif, asserting that the current administration has taken unprecedented steps in the power sector.

The discussion reflects ongoing debate over energy reforms, solar incentives, and efforts to balance consumer relief with financial sustainability in Pakistan’s power sector.

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