ISLAMABAD (PEN) : In a significant move to alleviate the financial burden on electricity consumers, the Economic Coordination Committee (ECC) has approved a reduction in the purchasing rate of additional electricity under net metering. The rate will decrease from Rs27 to Rs10 per unit, offering much-needed relief to grid consumers.
Why the Change Was Necessary
The decision was made in response to the growing adoption of solar energy in Pakistan. With more individuals installing solar systems and feeding excess electricity back into the grid, the shift has led to an increasing financial burden on grid consumers. The Finance Ministry highlighted that, as of December 2024, net metering had already caused an additional Rs169 billion burden on the national grid. Without intervention, this figure was projected to rise to a staggering Rs4,240 billion by 2034.
The move to reduce net metering rates aims to address this escalating pressure and is seen as a step toward balancing the growth of renewable energy with the financial sustainability of the power sector.
Revised Settlement Mechanism for Imported and Exported Electricity
In addition to the rate change, the ECC also approved a revised settlement mechanism for electricity imports and exports. Under the new system, imported and exported electricity will be billed separately instead of being netted off, ensuring greater clarity and accuracy in billing.
Impact of the Decision on Consumers
This reduction in the rate for purchasing excess electricity under net metering is expected to benefit both individual consumers and the overall electricity grid. With the increasing trend of solar energy adoption across the country, the decision also signals the government’s recognition of the importance of supporting green energy initiatives while managing grid sustainability.
Other Key Decisions by the ECC
In the same meeting, the ECC also approved the export of potassium sulphate fertilizer from Gwadar port. Moreover, the committee allocated funds to various government ministries, including Rs25 million for the Federal Ministry of Education, Rs22 million for the Ministry of Industries and Production, and Rs36 million for the Ministry of Interior and Narcotics Control.
Inflation and Price Stability
The ECC was also briefed on the country’s inflation trends. According to officials, food prices have shown a decline in recent months, a positive sign attributed to fiscal discipline, improved supply chains, and subsidy measures. Finance Minister Muhammad Aurangzeb instructed authorities to keep a close watch on inflation to ensure price stability in the coming months.
With these decisions, the ECC has made strides toward balancing financial relief for consumers with long-term sustainability in the energy sector, while also addressing other critical economic and security needs in the country.
