Prime Minister Shehbaz Sharif has directed the National Electric Power Regulatory Authority (NEPRA) and the Power Division to revise the net metering regulations to address concerns raised by Distribution Companies (Discos).
It should noted that net metering, a billing mechanism allowing consumers to feed surplus solar energy into the grid in exchange for credits on their electricity bills, is at the center of the proposed changes.
In a meeting, the Power Division presented its case to the Prime Minister, emphasizing the financial strain on Distribution Companies (Discos) due to extensive net metering, which is contributing to revenue shortfall. As a solution, the Division proposed reducing the buyback rates from the current Rs21 or Rs22 per unit to Rs11 or Rs12 per unit.
It was decided that the Division would refine the rationalization plan, focusing on converting the existing net metering system to gross billing with distinct rates for importing and exporting units, introducing a separate tariff category, revising buyback rates, amending net metering regulations, and establishing a dynamic formula for determining a reasonable payback period.
Meanwhile on Wednesday, Power Minister Awais Leghari clarified that the government has no immediate plans to impose taxes on solar net metering. He assured that existing regulations for installed solar systems would remain unchanged for now. However, he noted that in the future, net metering might be reconsidered due to its potential impact on fiscal deficits and circular debt.
![Local residents at the Swat River, which is overflowing due to pre-monsoon heavy rains in the area on the outskirts of Mingora, the main town of Pakistan's Swat Valley [Sherin Zada/AP]](https://mmnews.tv/wp-content/uploads/2025/06/Flooding-in-Swat-river-350x250.jpg)
