POLITICS & POLICY MAKING
The federal government has halted the transition from net metering to net billing, Federal Minister for Energy Owais Leghari told the National Assembly on Thursday, defending the existing net metering policy amid criticism on social media.
Leghari said only 466,000 consumers nationwide are currently on net metering, many of whom earn high profits on their solar investments.
“These consumers are earning around 50% profit on their capital annually, generating electricity worth Rs 5 but feeding Rs 27 to the grid,” he said.
The minister argued that continuing to buy electricity under net metering rates would raise prices for the remaining 90% of grid consumers by Rs 2 to 2.5 per unit. By moving to net billing, he said, profits for 400,000 consumers would drop to 37%, while electricity costs would decrease for the rest by Rs 1 to 1.5 per unit.
Leghari also addressed criticisms of the solar policy, noting that net metering is mostly benefiting wealthier areas.
“Solar has mostly been installed in posh areas of the country. The elite are benefiting from net metering,” he said.
He added that the regulator has updated net metering regulations five times, and the transition to net billing will not affect the poor.
The minister highlighted government efforts to reduce circular debt and improve energy sector finances, claiming that Rs 780 billion have been reduced in one year, including Rs 100 billion deducted from an Independent Power Producer linked to a relative of the Prime Minister.
“No one could have achieved what the Shahbaz Sharif government has done,” Leghari said.