Federal Minister for Power Awais Leghari defended recent changes to solar net metering regulations in the Senate on Tuesday. He insisted the adjustments were regulatory, not policy-based. The primary goal is to protect general electricity consumers from additional financial burdens.
Leghari clarified the role of the National Electric Regulatory Authority (NEPRA). He stated that NEPRA’s main duty is safeguarding consumer interests and preventing undue price hikes. Importantly, he noted that NEPRA has not altered any clauses in previously agreed contracts. All existing seven-year net metered contracts remain intact.
Protecting the Majority
The Minister presented data to support the decision. Out of 34.5 million electricity users in Pakistan, only 466,000 are net metering customers.
Leghari explained the financial risks of the old model. Allowing NEPRA to purchase electricity at Rs. 26 per unit would have imposed an annual burden of Rs. 550 billion on ordinary consumers. Consequently, failure to revise these regulations would have increased electricity costs for non-solar users by Rs. 5 per unit.
Solar Net Metering Growth & ROI
Despite the regulatory shifts, the sector remains robust. Leghari stated that the Pakistan Solar Association (PSA) supports the government’s measures. He expects solar power generation to increase by 8,000 megawatts.
Regarding investment concerns, Leghari offered reassurance. Under NEPRA’s approved rates, new consumers can still recover their investment within three years.
Energy Reforms & Political Context
Leghari also touched on broader energy milestones. Pakistan has achieved a target of 55% clean energy in its power mix. Additionally, furnace oil has been nearly eliminated from the national grid.
He attributed the high electricity prices seen during the 2018-22 government to sharp rupee depreciation. He claimed the current government is now managing these challenges effectively. International institutions have endorsed the Shehbaz Sharif government’s power sector reforms.
On the topic of Independent Power Producers (IPPs), Leghari said the government reviewed contracts strictly on merit. They made firm decisions without yielding to pressure from influential stakeholders.
