Pakistan’s Power Firms are seeking regulatory approval to introduce fixed charges for solar net metering consumers. The move aims to address financial challenges as more electricity users switch to solar energy and reduce reliance on the national grid.
During a public hearing on Tuesday, Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) informed the National Electric Power Regulatory Authority (Nepra) that rising solar adoption is cutting into their revenues. The companies argued that the introduction of fixed charges would help recover transmission and distribution costs.
The proposal, backed by the Ministry of Energy, suggests that fixed charges be applied on electricity exported by solar users. According to officials, this adjustment would ensure fair cost distribution among all consumers, including those who still rely on grid power.
The demand from Power Firms comes at a time when the government is facing a decline in electricity demand and excess capacity in the gas sector. High power tariffs have pushed households and businesses to shift toward solar solutions for cheaper and more reliable energy.
In recent years, the Power Division has made several attempts to reform the net metering policy. One proposal to reduce the buyback rate to Rs. 10 per unit was rejected by Prime Minister Shehbaz Sharif following public opposition.
At the hearing, Nepra also reviewed multi-year tariff petitions from Mepco and Gepco for the 2025–26 to 2029–30 period. The regulator expressed concern over payment delays to solar consumers and criticized Gepco for installing advanced metering systems without approval.
Meanwhile, Mepco reported achieving its 100% recovery target for the 2024–25 fiscal year, though some amounts remain pending.
In other related news also read Nepra Penalizes Three Power Firms Rs. 100 Million For Overbilling
To counter the growing shift toward solar, the government has introduced a three-year scheme offering discounted rates for increased grid power use. Officials believe this policy will help stabilize revenues for Power Firms and restore balance in Pakistan’s energy demand.
