Tag: electricity distribution

  • Govt plans to revise solar net metering policy amid power sector losses

    Govt plans to revise solar net metering policy amid power sector losses

    The federal government has announced plans to revise Pakistan’s solar net metering policy, aiming to reduce losses within the power sector. This announcement was made by Federal Minister for Energy, Sardar Awais Ahmad Leghari, during a press conference where he highlighted current issues surrounding solar net metering.

    Minister Leghari noted that citizens installing solar systems initially expected to recover their investments within three years. However, due to recent advancements, this period has been significantly reduced to just one to one and a half years. This rapid return on investment underscores the growing efficiency and popularity of solar energy solutions.

    The PML-N-led government had initially promoted solarisation in 2017, resulting in 113,000 connections currently operating under the net metering scheme. Leghari reassured that while the government is open to revising the solar net metering policy if necessary, it remains committed to sustaining the programme.

    “We will take effective measures to eliminate power theft and thereby reduce the financial burden on the national exchequer,” he stated, emphasising the government’s dual focus on promoting clean energy and maintaining economic stability.

    The government is also assessing the impacts of the increasing trend towards rooftop-generated electricity. Minister Leghari explained that this assessment would help determine the rate of return on investments in solar equipment and understand the broader implications of this shift.

    He highlighted the need to analyse whether the growing reliance on solar panels is leading to inflated electricity prices for local households. “We will be involved in analysing and balancing the solar net metering,” Leghari added, indicating a comprehensive approach to ensuring the policy benefits all stakeholders.

    Net metering, a billing mechanism that credits solar energy system owners for the electricity they add to the grid, remains a pivotal aspect of the government’s strategy to encourage renewable energy adoption. This revision aims to optimise its benefits and address emerging challenges within the power sector.

  • Caretaker govt decides to transfer ownership of electricity distribution companies to provinces

    Caretaker govt decides to transfer ownership of electricity distribution companies to provinces

    The caretaker government has issued an order for the transfer of ownership of electricity distribution companies to the provinces.

    To accomplish this, the caretaker prime minister has granted approval to submit the summary to the federal cabinet. A decision has been reached to overhaul the existing system concerning the sale, distribution, and pricing of electricity under the caretaker federal government’s jurisdiction.

    As a result of this federal government directive, the practise of implementing a uniform electricity tariff across the nation will be discontinued. Instead, the responsibility for determining electricity rates and providing subsidies will be entrusted to the respective provinces.

    In line with these developments, the Hyderabad and Sukkur Electric Supply Company will come under the ownership of Sindh, while the ownership of the Quetta Electric Company will be transferred to Balochistan, according to HUM News.

    Likewise, the Lahore Gujranwala, Faisalabad, and Multan Electric Supply companies will be transferred to the ownership of Punjab. The Islamabad Electric Supply Company will be jointly owned by Punjab and the Federation, while the Peshawar and Tribal Area Electric Supply Company will be under the ownership of KP.

    As per official documents, a comprehensive policy framework has been formulated for the transfer of distribution company ownership to the provinces. This move is motivated by challenges such as electricity theft and revenue losses, which have placed a strain on the national treasury.