In a move that has stirred concern among solar energy consumers, Pakistan’s power distribution companies are now seeking permission to impose fixed charges on households and businesses using solar net metering systems. The proposal, presented before the National Electric Power Regulatory Authority (Nepra) on Tuesday, aims to offset financial losses as more consumers shift away from the national grid.
During the public hearing, representatives from Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) argued that the growing adoption of solar panels was eating into their revenues. They suggested that fixed charges on electricity exported by solar users could help recover the cost of maintaining the transmission and distribution network expenses that, they say, continue regardless of reduced grid consumption.
The proposal has the backing of the Ministry of Energy, which maintains that the rapid expansion of solar net metering poses challenges to the sustainability of the power sector. Officials noted that with falling demand for grid electricity and an oversupply in the gas sector, the government is struggling to balance costs especially as high power tariffs drive more consumers toward solar solutions.
This is not the first time authorities have attempted to revise the net metering policy. Earlier this year, the Power Division proposed slashing the buyback rate for excess solar electricity from Rs. 21 to Rs. 10 per unit a move that drew strong public backlash and was ultimately rejected by Prime Minister Shehbaz Sharif.
During Tuesday’s session, Nepra also reviewed multi-year tariff petitions submitted by Mepco and Gepco for the 2025–26 to 2029–30 period. Company officials claimed that introducing fixed charges would help stabilize their operations, while the Power Division warned that the financial burden of capacity payments was increasingly falling on consumers still connected to the grid.
Nepra officials, however, raised concerns about the delayed payments owed to solar users and criticized Gepco for installing advanced metering systems without proper authorization.
Despite the challenges, Mepco reported achieving full recovery targets for fiscal year 2024–25, though admitted that some billed amounts remain pending and are collected later.
In a parallel effort to slow the shift toward solar, the government has recently launched a three-year scheme offering discounted rates for increased electricity consumption a move seen as an attempt to make grid power more appealing to consumers who might otherwise go solar.
