Nepra approves fixed charges on consumers as PM steps in after backlash on solar rules

ISLAMABAD: An application for the review of Nepra’s revised regulations for rooftop solar users was filed by Prime Minister Shehbaz Sharif, with the power regulator also giving a green signal to a government plan to impose steep fixed charges on residential consumers.

The premier also directed the Power Division to file a review petition against the move of the regulator regarding the new solar regulations.

National Electric Power Regulatory Authority (Nepra) revises the terms for all existing as well as future net metered solar consumers.

These are called prosumers. It did it on the grounds of surging solar penetration and the need for protecting an inefficient state-owned power system. It can be said that the notification imposed the end of net metering for prosumers and shifted them to net billing.

A statement issued by the Office of the Prime Minister said Mr. Khan “took immediate notice of the matter.” There was criticism from senators across party lines, including the ruling alliance's ally, the PPP, and the opposition PTI.

In quoting the PMO, the news article states: "The PMO further quoted the Prime Minister as directing the Power Division to file a review petition before Nepra "to ensure every possible safeguard of the existing consumer contracts.""

He was of the viewpoint that the “burden of 466,000 users benefitting from solar should not be put on 37.6 million domestic consumers” who used power directly from the national grid.

 “Power Division should chalk out a comprehensive strategy in this regard,” he said.

The directives were given during a high-level meeting headed by the prime minister on new Nepra regulations. The meeting was attended by Deputy Prime Minister Ishaq Dar, Power Minister Awais Leghari, Economic Affairs Minister Ahad Cheema, Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kiyani, and the adviser to the PM, Muhammad Ali.

Defending Nepra’s action, Mr. Leghari, while speaking in the Senate on Tuesday, said, “The whole exercise was to reduce the burden on the consumer. Changing regulations as per the law and as per the Constitution is the duty of the regulator.” On whether he is ready to step down, Mr. Leghari added, “This is not policy; there should be clarity on that.”

There have been claims from different stakeholders and policy experts that the Prosumer Regulations 2025 would affect the decade of development in clean energy as initiated by the citizens.

Under this new regulation, registered prosumers will be automatically placed under net billing, replacing the net metering method, and their export credits will be given for only one month, while currently, credits are given for three months. However, the other conditions will remain the same until their contracts expire after seven years.

Under the net billing system, the power generated by the prosumer is bought by the respective distribution company (Disco), and the consumer is charged for the power imported from the grid at around Rs37-55 per unit (as per the slab) after receiving the amount of power exported at the National Average Energy Purchase Price (NAEPP), amounting to around Rs10 per unit.