Govt Considers Reducing Tariff for Solar Net Metering

The government, acknowledging concerns over high fuel costs affecting consumers, hinted at revising down net metering tariffs for rooftop solar power units. This move was discussed during a Senate Standing Committee on Power meeting, where they also decided to close investigations into alleged corruption in the awarding of contracts for a transmission line linked to the Dasu Hydropower Project.

The Power Secretary, Asad Rehman Gilani, explained that recent fuel cost increases were due to factors like higher insurance and tanker charges from the Middle East situation. He mentioned the government’s commitment to the International Monetary Fund (IMF), which led to fuel cost adjustments reaching consumers with a two-month delay. However, he expressed hope for lower adjustments in summer.

Additionally, the committee discussed revising the current net metering tariff, which stands at Rs22 per unit, considering it high for urban rooftop solar owners. The caretaker Power Minister, Muhammad Ali, and Secretary Gilani suggested that affluent urbanites could afford higher rates, while smaller consumers might struggle. They emphasized the need for fairness, highlighting how poorer consumers were subsidizing the wealthy through net metering.

Furthermore, the committee decided to end inquiries into contract awards for the Dasu project’s transmission line, citing examination by high courts, government grievance mechanisms, and the World Bank’s scrutiny. The change in committee leadership also influenced this decision, with the new chairman believing further scrutiny was unnecessary given previous assessments.