The federal government has diminished the buyback price for electrical energy underneath internet metering from Rs27 per unit to Rs10 per unit, citing a “vital improve within the variety of photo voltaic net-metering shoppers” and the ensuing monetary pressure on grid shoppers.
The Financial Coordination Committee (ECC) of the cupboard, chaired by Finance Minister Muhammad Aurangzeb, authorized amendments to the present net-metering laws aimed toward assuaging the rising monetary burden on grid shoppers, based on an announcement from the Finance Division.
As a part of the authorized adjustments, the ECC revised the buyback price from the Nationwide Common Energy Buy Worth (NAPP) to Rs10 per unit. The choice follows issues in regards to the monetary impression of the rising variety of photo voltaic net-metering shoppers on the nationwide energy grid.
The Nationwide Electrical Energy Regulatory Authority (NEPRA) will now be authorised to revise the buyback price periodically, guaranteeing the framework stays versatile and aligned with market situations.
Nevertheless, the revised framework is not going to apply to present net-metered shoppers who’ve legitimate licenses, agreements, or concurrence underneath the NEPRA (Various & Renewable Power) Distributed Era and Web Metering Rules, 2015.
These agreements will stay efficient till they expire, guaranteeing the rights and obligations of those shoppers are upheld as per the unique phrases.
The ECC additionally authorized an replace to the settlement mechanism for electrical energy billing. Beneath the brand new construction, imported and exported models shall be billed individually.
Exported models shall be bought on the new buyback price of Rs10 per unit, whereas imported models shall be charged based on peak/off-peak charges, inclusive of taxes and surcharges.
The Energy Division was authorised to concern proposed pointers, topic to Cupboard’s ratification, for NEPRA’s incorporation into the regulatory framework to make sure readability and consistency within the implementation of those adjustments. The choice follows discussions on the rising impression of photo voltaic net-metering on the nationwide energy grid.
The Energy Division highlighted the necessity for regulatory changes as a result of file decline in photo voltaic panel costs, which has led to a pointy rise within the variety of photo voltaic net-metering shoppers.
As of December 2024, photo voltaic net-metering shoppers had transferred a burden of Rs159 billion to grid shoppers, a determine that’s projected to develop to Rs4,240 billion by 2034 with out well timed amendments.
The variety of photo voltaic net-metering shoppers surged considerably, reaching 283,000 by December 2024, up from 226,440 in October, 2024. The entire put in capability additionally grew from 321 MW in 2021 to 4,124 MW by December, 2024, underscoring the fast growth of the sector.
Nevertheless, the rise in photo voltaic net-metering shoppers has led to the next price of electrical energy for grid shoppers, undermining the federal government’s efforts to scale back energy tariffs.
The ECC additionally mentioned how these shoppers keep away from paying the mounted cost part of the tariff, which incorporates capability prices and the mounted bills of energy distribution and transmission, putting a disproportionate monetary burden on grid shoppers.
The committee additionally famous that 80% of photo voltaic net-metering shoppers are concentrated in 9 main cities, with a good portion situated in prosperous areas. This geographic focus highlights the necessity for regulatory reforms to make sure equity and steadiness throughout the vitality distribution system.
The amendments authorized by the ECC characterize a crucial step in guaranteeing the sustainability of the ability sector whereas defending the pursuits of all shoppers, particularly these reliant on the grid for electrical energy, stated the Finance Division.