According to the Business Recorder, the government has agreed to restrict net metering contracts to five years and lower the buyback pricing for excess electricity to Rs. 10 per unit, with periodic changes made when the authorities believe they are losing money.

According to the Business Recorder, the government has agreed to restrict net metering contracts to five years and lower the buyback pricing for excess electricity to Rs. 10 per unit, with periodic changes made when the authorities believe they are losing money.
The action comes after net metering customers criticized the drastic drop from Rs. 27 per unit.
The National Electric Power Regulatory Authority (NEPRA) has been instructed to amend settlement procedures and modify the buyback rate in accordance with the National Average Power Purchase Price. While imported units will be billed at peak or off-peak rates, exported units will be bought at the authorized rate. Credits for extra electricity will be given to consumers, but they cannot be cashed out.
In order to establish hosting capacity restrictions for each transformer and feeder, distribution companies are required to carry out investigations within six months. Additionally, new net metering customers will have to install compliant inverters with grid interaction capabilities, remote monitoring, and anti-islanding protection, as mandated by NEPRA’s upgraded inverter standards.
Additionally, the updated framework stipulates that net metering capacity cannot beyond a customer’s authorized load. Surplus units won’t be credited if export levels surpass 10% of this cap. The government contends that because net metering customers currently avoid fixed charges, power rates are on the rise.
Net metering decreased sales by 3.2 billion kWh in FY24. This raised charges by Rs. 0.9 per unit and transferred the Rs. 101 billion financial burden to other consumers.
With a predicted 18.8 billion kWh drop in sales by FY34, this financial impact is expected to increase, resulting in an extra burden of Rs. 545 billion and a Rs. 3.6 per unit increase in rates.
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