• ECC cuts the repurchase rate of solar network measurement in a third, the net billing ends
• Under the new frame, consumers will sell at RS10, buy at RS42-48 per unit
Islamabad: In another instinctive reaction to curb the growth of renewable energy through the net solar measurement amid high electricity costs of the network, the Government reduced the repurchase rate on Thursday in a third to RS10 per unit and discarded net turnover.
The decision, applicable to the new consumers of net measures, was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, chaired by the Minister of Finance, Muhammad Aurangzeb.
According to the revised policy, electric companies will buy solar excess electricity from consumers to RS10 per unit during the day while selling electricity from the network to RS42 per unit (out of peak) and RS48 per unit (peak) after sunset, excluding taxes and duties.
In addition, consumers may no longer install the solar capacity that exceeds their sanctioned load, except for a 10 percent mattress, compared to the 50 percent margin allowed in the previous policy.
Existing consumers will gradually be presented in this new framework as their seven -year contracts expire.
The Energy Division justified the policy change, claiming that existing net measurement consumers were causing nine paisa per unit of impact on the average electricity costs with a total annual impact of RS101 billion, which could increase to RS3.6 per unit (RS545B) by 2034 if it is allowed without taking into account.
Petroleum Minister Ali Pervez Malik criticized the measure, saying that he would send a bad signal to the market and consumers and could have managed better.
Power Miniter Awais Leghari emphasized that duty or taxes would also have negatively affected solarization outside the network and agricultural pipes, which could not be regulated or the planned area.
Leghari suggested that the real problem was with middle -class urban consumers, whom he described as the “rich” sector that benefits from low -cost self -generated electricity while avoiding capacity charges and transmission costs.
An official said that salaried and urban consumers, already paying high taxes and depending on the electricity of the expensive, inefficient and unreliable network, would now be forced to sell their surplus solar energy to RS10 per unit while buying at RS65-70 per unit during peak hours, or invest in a battery storage cost to go to the men.
Lack of consultation
The power division did not present any independent evaluation of such speculation. A prior consultation with the relevant stakeholders were not made, including the Energy Regulator, Nepra, the Federal Income Board and the Ministry of Finance.
The division said that the summary had circulated to Nepra, the Ministry of Industries and the National Energy Efficiency and Conservation Authority (NEECA). However, their views and comments could not ensure due to the urgency of the matter.
The ECC allowed the Energy Division to issue policy guidelines to NERPA for “review of the repurchase rate of the national average energy purchase price to RS10 per unit” for now and occasionally in the future.
The liquidation mechanism will be carried out “in such a way that the imported and exported units are treated separately for billing. The exported units will be bought at the approved repurchase rate (RS10) and the imported units would be billed at the applicable peak/peak peak rates”.
In addition, in the event that the total amount of invoices against units exported by net measurement consumers exceeds the total amount of invoices against imported units, the net amount will be accredited to consumers in the subsequent billing cycle without any disposition for consumers to place those accredited units.
Regulatory adjustments
NEPRA must establish a limit on the accommodation capacity of each distribution and feeder transformer. It would also be required to establish standards for investors that facilitate real-time network interaction, including voltage regulation and frequency and support communication interacting with discos with Wi-Fi, GSM, etc.
The Energy Division highlighted the pressing need for regulatory adjustments, citing a record decrease in the prices of solar panels that has led to a strong increase in the number of solar consumers of net measures.
As of December 2024, the solar consumers of net measures had transferred a load of RS159B to the network consumers, a figure that is expected to increase at RS4.24 billion by 2034 without timely amendments.
The ECC was informed that the number of solar consumers of net measures increased significantly, reaching 283,000 in December 2024, compared to 226,440 in October 2024.
The ECC also approved a summary of the Ministry of Maritime Affairs with respect to the export of potassium sulfate fertilizer from the port of Gwadar and allowed an exemption to Agven Private Ltd, which operates in the free zone of Gwadar North, to export up to 10,000 tons per year or 50 percent real production, which is lower, until December 31, 2025.
The decision meant supporting the development of Gwadar’s free zone while guaranteeing regulatory supervision through biannual shipping limits and data monitoring mechanisms.
The ECC Approved About RS1.2BN Worth of Five Supplementary Grants, Including RS250 Million to The Ministry of Federal Education, RS220m to The Ministry of Industries for Small and Medium Enterprises (SMEs), RS36.1m to The Ministry of Interior for Helicopter Maintenance for Sindh Rangers, RS15M for Helicopter Maintenance for Frontier Corps Balochistan, and RS670m for the spending of sustainable development objectives in Islamabad.
Posted in Dawn, March 14, 2025
