The government on Tuesday appeared to backtrack from its earlier claims of the impact on the national grid from solar net metering as the National Electric Power Regulatory Authority (NEPA) opened a review of a proposal to increase the national power purchase price.
“Solar generation is increasing, but this does not have a significant impact on the grid,” Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar said during his testimony, admitting prevailing energy costs had prompted the shift to solar power.
“They [consumers] are now consuming more due to solar availability but their offtake from the national grid has not changed,” he said. “Their withdrawal from the grid is almost stable. They are drawing the same quantities they were drawing earlier,” he added, while noting the situation could change in future.
Earlier, Power Minister Awais Leghari had called for revising the existing net-metering system, arguing that it was placing a burden on the national grid and pushing up prices for existing consumers.
During the briefing, the CPPA presented five different assumptions about proposed tariff revisions with effect from Jan. 1, 2026. These assumptions presented a total average purchase power price ranging between Rs. 25.95/unit to Rs. 26.53/unit. The latter, per the CPPA, is a “worst case scenario” that posits currency devaluation from the existing Rs. 280-290/dollar to Rs. 300-310/dollar.
NEPRA was informed fuel costs are likely to remain stable with a minor risk of a 5% increase in global prices. The CPPA said it had projected interest rates at 11% for the first half of FY26 and 10.5% for the second half.
Member NEPRA Rafiq Ahmed Sheikh criticized the submission as incomplete and deficient. He questioned the accuracy of the data underpinning the proposal, with NEPRA saying it would consult industry stakeholders before finalizing any rate.
During the meeting, representatives of various major business groups warned the proposed range would ensure energy remained unaffordable. Federation of Pakistan Chambers of Commerce and Industry’s Rehan Javed warned the proposed plan would continue to erode industrial competitiveness.
Tanveer Bari of the Karachi Chamber of Commerce and Industry urged regulators not to “inflate” the exchange-rate assumption, noting that any weakening of the rupee sharply increases generation costs.