In a brief statement, the Power Division asserted that there is no truth to the claims about changes to the Net Metering Policy, and no instructions have been issued by the Prime Minister regarding this matter. The Power Division criticized news channels for not seeking their comments before reporting such news.
Contrary to the Power Division’s rebuttal, it is undeniable that the Prime Minister has issued special instructions on rationalizing net metering tariffs. Authorities are looking to amend Net Metering Regulations and potentially replace the current system with a gross metering system to discourage solar use and encourage consumers to switch back to grid electricity. This move aims to manage the looming danger of capacity payments, which are expected to spike in the next fiscal year.
The Prime Minister has directed the Power Division to submit a summary on net metering after refining the following elements of rationalization:
- Conversion of the existing net metering regime to gross billing (separate rates for import and export of units)
- Creation of a separate tariff category
- Inclusion or exclusion of fixed charges
- Revision of buyback rates
- Amendment of Net Metering Regulations
- Development of a dynamic formula to determine a reasonable payback period
The National Electric Power Regulatory Authority (NEPRA) is collaborating with the Power Division on this proposal.
