ISLAMABAD: Pakistan has briefed International Monetary Fund (IMF) that it would soon end net metering policy for rooftop solar panels based on cheaper power generation and will replace it with gross metering aimed at selling highly expensive and unaffordable grid electricity to consumers.

During ongoing negotiations for “Further engagements with Fund,” Pakistani authorities have briefed global lender about its plans to seek $ 15.4 billion worth of energy debt restructuring from China, according to government sources.

Sources said that Ministry of Energy has taken IMF into confidence about its plans regarding solar panel policy-which consumers benefit from to lessen reliance on highly expensive grid electricity.

Pakistan informed IMF that it wanted to replace net metering policy with gross metering for rooftop solar panels aimed at discouraging their use, said sources. Increasing reliance on solar panels is affecting revenues of power distribution companies that now face competition in form of in-house power generation.

Pakistan’s current average base tariff is Rs 29.79 per unit, inclusive of Rs 17 per unit idle capacity charges. After including various surcharges, fuel price adjustments, quarterly adjustments and taxes, residential consumers are forced to pay up to Rs 62 per unit electricity cost.

Ministry of Energy viewed that due to less reliance on grid electricity, rooftop solar consumers were now slipping into protected consumers’ category, paying very little for electricity.

Published in The Daily National Courier, May, 20 2024

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