Power distribution companies are seeking regulatory approval to impose fixed charges on solar net metering users, in a bid to offset mounting financial losses as more consumers shift away from the national grid.
At a public hearing on Tuesday, Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) told the National Electric Power Regulatory Authority (Nepra) that the proliferation of solar net metering was eroding their revenues.
The companies’ proposal, backed by the Ministry of Energy, argued that imposing fixed charges on electricity exported by net metering users would help recover transmission and distribution costs.
The move comes as the government grapples with falling electricity demand and a glut in the gas sector, driven by high tariffs that have pushed consumers to adopt solar solutions. Previous attempts by the Power Division to overhaul the net metering policy, including a proposal to slash the buyback rate to Rs. 10 per unit, were met with public backlash and ultimately rejected by Prime Minister Shehbaz Sharif.
Nepra’s hearings on Tuesday also addressed multi-year tariff petitions from both Mepco and Gepco for the 2025-26 to 2029-30 period. Officials from the power companies said that fixed charges would make their operations more viable, while the Power Division warned that the burden of capacity charges was increasingly falling on grid-connected consumers.
The regulator also raised concerns about payment delays to solar net metering users and criticized Gepco for the unauthorized installation of advanced metering infrastructure.
Meanwhile, Mepco reported achieving 100% recovery targets for fiscal 2024-25, though acknowledged that a portion of billed amounts typically remains outstanding and is collected in subsequent months.
The government has recently introduced a three-year scheme offering lower rates for incremental electricity consumption, aiming to stem the shift to solar and boost demand for grid power.
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