The Economic Coordination Committee (ECC) has approved significant amendments to the country’s net-metering regulations aimed at alleviating the financial burden on grid consumers. One of the key changes is the reduction of the buyback tariff to Rs 10 per unit.
During a recent meeting with the International Monetary Fund (IMF), the government outlined plans to slash solar net-metering tariffs from Rs 26 per unit to Rs 10, raising concerns about the potential impact on consumers transitioning to off-grid systems.
A press release from the Finance Division confirmed that the ECC has revised the buyback rate from the national average power purchase price (NAPP) to Rs 10 per unit. This adjustment is expected to provide some relief to the national power grid, which has been affected by an increasing number of solar net-metering users. However, this revision is subject to final approval by the cabinet.
As part of the decision, the ECC also proposed allowing the National Electric Power Regulatory Authority (Nepra) to periodically adjust the buyback rate, ensuring the regulations remain flexible and aligned with market changes.
The move follows extensive discussions on the growing impact of solar net-metering, with the Power Division highlighting a significant drop in solar panel prices, which has led to a surge in the number of solar net-metering users.
Importantly, the new framework will not affect existing consumers who have valid licenses, agreements, or approvals under the Nepra (Alternative & Renewable Energy) distributed generation and net-metering regulations, 2015. These agreements will remain in effect until their expiration, preserving the rights and obligations of consumers, including the agreed-upon tariffs.
Additionally, the ECC approved updates to the settlement mechanism. Imported and exported units will now be billed separately, with exported units purchased at the new buyback rate of Rs 10 per unit, while imported units will be billed at the applicable peak/off-peak rates, including taxes and surcharges.
The ECC has also authorized the Power Division to issue proposed guidelines to Nepra for incorporation into the regulatory framework, pending cabinet approval. This will ensure clarity and consistency in the implementation of these new amendments.
The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, was attended by key officials, including Energy Minister Sardar Awais Ahmad Khan Leghari, Maritime Affairs Minister Qaiser Ahmed Sheikh, and Petroleum Minister Ali Parvez Malik, as well as senior officials from relevant ministries.
