The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved several proposed amendments to net-metering regulations, reducing the buyback rate, claiming the move aims to reduce the burden on grid consumers.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC’s decision follows various ministers lamenting a surge in the number of solar net-metering consumers. The lawmakers have alleged the move passes additional burdens onto grid consumers.
Under the changes approved, the ECC has reduced the buyback rate from the National Average Power Purchase Price from the existing Rs. 27 to Rs. 10/unit. The committee also approved a proposal, subject to the ratification of the federal cabinet, to enable the National Electric Power Regulatory Authority (NEPRA) to revise the buyback rate periodically to ensure the framework aligns with evolving market conditions.
According to a statement issued after the ECC meeting, the revised policies will not apply to existing net-metered consumers with valid licenses or agreement under the NEPRA (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. Those agreements, it said, would remain in place until their license or agreement expires. This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms, it added.
Another proposal approved by the ECC calls for imported and exported units to be treated separately for billing purposes. While the exported units would be purchased at the Rs. 10/unit buyback rate, imported units would be billed at the applicable peak/off-peak rates, inclusive of taxes and surcharges, during the monthly billing cycle.
The ECC has authorized the Power Division, subject to the cabinet’s approval, to issue the revised guidelines to NEPRA for incorporation into the applicable regulatory framework to ensure their implementation.
During the meeting, the Power Division highlighted the pressing need for regulatory adjustments, citing a record decline in solar panel prices triggering a sharp increase in solar net-metering connections. As of December 2024, it said, solar net-metering consumers had transferred Rs. 159 billion burden to grid consumers, with expectations this could surge to Rs. 4,240 billion by 2034.
According to the Power Division, there are 283,000 net metering consumers as of December 2024, up from 226,440 in October 2024. It said the total installed capacity grew up from 321MW in 2021 to 4,124MW in December 2024. It claimed that the increase in solar net-metering consumers had boosted electricity costs for grid consumers, hampering efforts to reduce power tariffs.
The ECC also discussed the financial implications of the growing number of solar net-metering consumers, claiming they don’t pay the fixed charge component of the tariff, including capacity charges and the fixed expenditures of power distribution and transmission entities. This, it claimed, has transferred a disproportionate financial burden onto grid consumers, contributing to higher electricity tariffs and undermining the sustainability of the energy sector.
The ECC also received a briefing on declining inflation trends in 2025, attributing the slowdown to fiscal discipline, improved supply chains, and targeted subsidies. The finance minister, as chair, appreciated these efforts and stressed the need for continued vigilance to maintain price stability.
The cabinet body also discussed a summary submitted by Ministry of Maritime Affairs regarding export of Potassium Sulphate Fertilizer from Gwadar Port. It approved an exemption for M/s Agven Private Limited to export up to 10,000 tons annually or 50% of actual production, whichever is lower, until Dec. 31, 2025. The decision aims to supports the development of Gwadar Free Zone while ensuring regulatory oversight through biannual shipment limits and data monitoring mechanisms.