The Power Division has refuted claims suggesting the termination of the net metering policy in Pakistan. In a concise statement, it clarified that there is no validity to such assertions and no directives have been issued by the Prime Minister regarding any alterations to the Net Metering Policy. The Power Division expressed disappointment that news outlets did not seek comment before disseminating such information.

However, recent developments seem to contradict these official statements. According to a document obtained by NetMag, special directives have been issued regarding the rationalization of net metering tariffs, specifically targeting amendments to the Net Metering Regulations.

Prime Minister Shehbaz Sharif reportedly ordered the cessation of solar net metering in Pakistan and the imposition of fixed charges on households installing solar systems, according to high-level sources. This decision comes despite the Power Division’s denial just two weeks ago regarding any plans to terminate solar net metering in the upcoming fiscal year.

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Government sources reveal intentions to establish dual rates for the purchase and sale of solar-powered electricity, alongside imposing fixed charges on solar consumption to be collected monthly. Authorities are also considering amending the Net Metering Regulation to introduce a separate tariff category, aiming to generate additional revenue from solar users seeking alternatives to expensive grid electricity.

In addition to these measures, the federal government has greenlit the establishment of a 600 MW solar power plant in collaboration with Saudi Arabian investors. Prime Minister Shehbaz Sharif has instructed the prompt submission of a summary outlining both proposals for consideration.

Should these proposals be approved, the new stance on solar net metering is anticipated to come into effect in the upcoming fiscal year. Interestingly, Energy Minister Awais Leghari had previously denied reports of abolishing solar net metering, emphasizing its importance to the coalition government. However, the recent directives from the Prime Minister seem to confirm earlier speculations. It’s worth noting that Pakistan currently has approximately 113,000 consumers with net-metering licenses, constituting less than 0.5 percent of the total population.