The Prime Minister has instructed the Power Division to confirm the proposed new tariff in consultation with the National Electric Power Regulatory Authority (NEPRA) after a delay of several months.
The directives were reportedly issued during a meeting held at the Prime Minister’s Office on October 22, 2025, which was attended by relevant stakeholders. A government official said the Power Division will work with NEPRA to assess the impact of the buyback rates in order to prepare final recommendations concerning the financial burden on general consumers.
The Power Division has proposed that the net metering buyback rate be reduced from the current Rs22 per unit to around Rs11.30 per unit, citing that the existing rate is increasing financial pressure on other consumers.
Furthermore, the Prime Minister directed the Power Division to prepare new standard agreements for future consumers under the proposed net billing framework. The Ministry of Information and Broadcasting has been tasked with developing a comprehensive and coordinated communication strategy to effectively present the government’s new policy to the public.
Under the existing net metering system, consumers who generate electricity and supply it to the grid are exempt from paying fixed charges. This has led to higher capacity payments, reduced electricity sales, and lower recovery of fixed costs — factors that have contributed to an increase in tariffs for grid-connected consumers.
