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Friday, March 14, 2025

ECC approves amendments to net-metering regulations, cuts buyback rate to Rs10/unit

The Economic Coordination Committee (ECC) on Thursday approved amendments to the existing net-metering regulations to reduce the growing financial burden on grid consumers and slashed the buyback tariff to Rs10 per unit.

In a meeting with the International Monetary Fund last week, the government had briefed the Fund on plans to slash solar net-metering tariffs from Rs26/unit to Rs10, raising concerns about the impact on consumers shifting to off-grid solutions.
According to a press release issued by the Finance Division today, the ECC revised the buyback rate from the national average power purchase price (Napp) to Rs10 per unit, APP reported.
It said that the committee had approved the proposal — subject to the cabinet’s approval — to allow the National Electric Power Regulatory Authority (Nepra) to revise this buyback rate periodically, ensuring that the framework remained flexible and aligned with evolving market conditions.
According to APP, the decision taken followed extensive discussions on the growing impact of solar net-metering on the national power grid.
The Power Division highlighted the pressing need for regulatory adjustments, citing a record decline in solar panel prices that led to a sharp increase in the number of solar net-metering consumers.
However, the press release clarified that the revised framework would not apply to existing net-metered consumers with a valid license, concurrence, or agreement under the Nepra (Alternative & Renewable Energy) distributed generation and net metering regulations, 2015.
Any such agreements would remain effective until the expiration of the license or agreement, whichever occurred first, ensuring the rights and obligations of consumers, including agreed-upon rates, would continue as per the existing terms.
The ECC also approved an update to the settlement mechanism, APP reported.
Under the new structure, imported and exported units would be treated separately for billing purposes.
The exported units would be purchased at the revised buyback rate of Rs10/unit, while the imported units would be billed at the applicable peak/off-peak rates, inclusive of taxes and surcharges, during the monthly billing cycle.
The ECC also authorised the Power Division to issue proposed guidelines, subject to the cabinet’s ratification, to Nepra for incorporation into the applicable regulatory framework, ensuring clarity and consistency in the implementation of these amendments.
The ECC meeting — chaired by Finance Minister Muhammad Aurangzeb — was attended by Minister of Energy (Power Division) Sardar Awais Ahmad Khan Leghari, Minister for Maritime Affairs Qaiser Ahmed Sheikh and Petroleum Minister Ali Parvez Malik, along with federal secretaries and senior officials from relevant ministries and divisions.

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