The Economic Coordination Committee (ECC) has approved significant amendments to the net metering regulations, lowering the buyback rate for net metering consumers from Rs27 per unit to Rs10 per unit. This move aims to balance the financial impact of the growing adoption of solar energy on the broader electricity grid.
Key Changes to Net Metering Regulations
According to the ECC’s statement, the National Electric Power Regulatory Authority (NEPRA) will now have the authority to periodically review and adjust the buyback rates. However, it is important to note that the new amendments will not apply to existing net metering consumers, meaning that those already enrolled in the system will continue to operate under the previous rates.
Under the revised system, electricity imports and exports will be billed separately, helping to create a more transparent and regulated process. This change comes as the number of net metering consumers in Pakistan has surged to 283,000, indicating a rapid transition towards solar energy.
Financial Impact of Solar Energy
The report also highlighted the growing financial burden caused by solar net metering users on the national grid. Net metering consumers have transferred a financial burden of Rs159 billion onto grid users, and this amount is expected to escalate significantly, reaching Rs4.24 trillion by 2034 if left unaddressed.
A key concern is the concentration of net metering users, with 80% of them residing in just nine major cities. This uneven distribution has raised questions about fairness, as it disproportionately affects grid users in regions where solar energy adoption is lower.
To address these concerns, officials emphasized the need for reforms in the net metering system. These reforms are aimed at stabilizing electricity prices and ensuring that the costs associated with solar energy adoption are more evenly distributed among all consumers.
Gwadar Port Receives Export Clearance for Potassium Sulfate Fertiliser
In another key development, the ECC granted export clearance for 10,000 tonnes of potassium sulfate fertilizer from the Gwadar Port Free Zone. A company operating within the Free Zone has received permission to handle this export, which is expected to boost trade activity at Gwadar Port and enhance Pakistan’s fertilizer export capabilities.
Other Decisions and Approvals
The ECC meeting, chaired by Federal Finance Minister Muhammad Aurangzeb, also addressed several other important matters:
- Legal and Financial Matters: The Interior Ministry has been directed to seek legal advice on a gold-related case and provide an explanation for delays under the Customs Reward Rules 2012.
- Grants for Various Sectors: The committee approved grants for a variety of sectors, including Rs250 million for ICT educational projects, Rs220 million for the SME Development Project under the Ministry of Industries and Production, and Rs670 million for Sustainable Development Goals (SDGs) projects.
- Helicopter Repairs: The committee approved funding for helicopter repairs for the Ministry of Interior and Narcotics Control.
Outlook on Inflation
In addition to these measures, the ECC briefing revealed a positive economic outlook, with inflation expected to decline in 2025. Essential commodity prices have already shown a downward trend in recent weeks, suggesting that inflationary pressures may ease in the coming year.
These decisions reflect the government’s efforts to balance financial stability, support infrastructure development, and promote fair distribution of resources in the country.
