Discos seek fixed charges on solar net metering
Power distribution companies MEPCO and GEPCO have sought regulatory approval to impose fixed charges on solar net metering users, arguing the levy would recover losses caused by reduced electricity sales and unutilized grid capacity.
During public hearings conducted by the National Electric Power Regulatory Authority (NEPRA) on Tuesday, both utilities urged the regulator to allow “fixed charges on units exported by net metering users to the extent of transmission and distribution costs.”
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Officials from MEPCO and GEPCO told the hearings their financial sustainability was being eroded as more consumers shifted to solar generation.
They argued that solar households remain connected to the grid but avoid capacity payments, pushing the burden onto other consumers. The Power Division has repeatedly warned that the proliferation of net metering could threaten grid stability and revenue recovery.
Energy Minister Awais Leghari has twice attempted to revise the solar net metering framework, proposing to replace the current exchange mechanism with a lower purchase rate of Rs10 per unit. However, Prime Minister Shehbaz Sharif rejected the proposed policy following public backlash from renewable energy advocates and households investing in rooftop systems.
Experts note that Pakistan’s high electricity tariffs — which rose above Rs65 per unit for some consumer slabs in 2025 — have accelerated the shift toward distributed solar.
According to the National Electric Power Regulatory Authority’s 2024 report, installed solar capacity under net metering exceeded 2,000 MW, up from just 250 MW in 2020.
During the NEPRA hearings, GEPCO faced criticism for installing Advanced Metering Infrastructure (AMI) devices without regulatory approval or data backup.
The regulator also reprimanded the company over delays in new meter installations, with applications pending for more than two months. MEPCO, meanwhile, reported achieving its 100% recovery target for FY2024–25, though about 12–13% of billed amounts remain outstanding each year, translating into Rs900 million in irrecoverable dues despite legal action.
NEPRA is expected to issue a formal decision on the proposed fixed charges after reviewing stakeholder comments. The outcome could significantly impact Pakistan’s distributed generation policy and future investments in rooftop solar, a segment growing rapidly under the existing net metering framework.
