ISLAMABAD : Minister for Power, Sardar Awais Leghari and former Finance Minister, Dr. Miftah Ismail have locked horns on the new net metering policy of the government , according to which buy back rates have massively been reduced, sending signals to consumers to avoid installation of net metering.
Former Finance Minister, Dr. Miftah Ismail, criticised the government for fixing buyback rates for net metering consumers at Rs 10 per unit, adding that the government would buy cheap electricity from solar system owners and sell it at exorbitant rates.
In response to Miftah Ismail, Sardar Awais Ahmed Khan Leghari termed the claims as misleading and baseless, stating that these statements misrepresented the government’s efforts in the energy sector.
He said Miftah Ismail’s attempt to mislead the public is based on false data and unfounded accusations. The government is particularly committed to achieving targets related to the promotion of renewable energy.
Minister Awais Leghari further stated that the promotion of renewable energy, especially solar energy, is a key priority for the government. He mentioned that recent changes in net metering rules have reduced the cost of solar panels, making it more accessible to the public. As a result, more than 4,000 MW of solar energy has already been added to the national grid, and this is expected to exceed 12,000 MW in the next eight years. He also added that future solar net metering customers would recover their investments within three to four years, which represents an excellent return on investment.
The Minister clarified that the agreements of current net metering customers would remain at the old rates to ensure stability and security for their contracts.
Federal Minister Awais Leghari also clarified the changes in IPP contracts, stating that the revision of IPP agreements has resulted in savings of over 1.5 trillion rupees, which will soon be passed on to the public in the form of lower prices.
The Federal Minister emphasized the significant progress in Pakistan’s clean energy production. Last year, more than 55% of the total energy in the national grid came from clean energy sources, including hydro, solar, wind, and nuclear power. We are on track to increase this share to over 85% in the coming years, positioning Pakistan as a global leader in the green energy sector.
Leghari was of the view that the government has made timely and effective decisions to stabilize the supply of sugar and wheat. It is unfortunate that a former finance minister is politicizing economic issues instead of offering constructive suggestions.
He reiterated that the government is determined to complete reforms in energy, agriculture, and other economic sectors. We have made significant reforms in the energy sector, and it is regrettable that these efforts are not being recognized. We are taking practical steps to improve the country’s energy infrastructure and economic stability. However, he also welcomed constructive suggestions but rejects criticism that is devoid of data or facts.
Meanwhile at webinar, the participants stated that the ECC was presented a one sided summary placing all the blame on Net Metering Consumers who are contributing towards Green Energy with Zero line losses and helping to reduce Co2 emissions.
On the other hand, nothing is mentioned about Solar IPPS from whom Government is buying at Rs 49 per unit and that too in $ and after providing Sovereign Guarantees. In reality they are the one causing burden on grid users without Net Metering.
Former Managing Director Pakistan Stock Exchange, Moin Fuda strongly opposed replacing Net Metering with Net Billing which will shatter the dreams of middle class who are saving for last few years to install a 5-8kw system to reduce their bills. They will not be able to afford Hybrid with Batteries and as such buying at Rs 50 and selling at Rs. 8.80 (minus GST) will not make any sense.
He was of the view that though ECC has decided no change in the case of existing license holders, yet according to some sources Power Division is making an attempt to apply Net Billing to them. If that happens NEPRA is advised not to pay any heed on such a move because existing license have been issued under NEPRA’S Net Metering Policy of 2015 which clearly stipulates Netting of Off-Peak vs Off-Peak and Peak vs Peak.
” Those who can afford will switch to Hybrid and use Batteries in the night time and charge the batteries in the Day time. Thus, ultimately reduced purchase by them will result in extra capacity payment to IPPs by GoP,” he added.
