Power distribution companies have asked NEPRA for approval to impose fixed charges on solar net metering users. The move aims to recover growing financial losses as more consumers shift to solar energy and reduce dependence on the national grid.
During a public hearing on Tuesday, the Multan Electric Power Company (MEPCO) and the Gujranwala Electric Power Company (GEPCO) informed NEPRA that the increasing adoption of solar net metering is hurting their revenues. The companies, supported by the Ministry of Energy, proposed fixed charges on electricity exported by solar users to help cover transmission and distribution costs.
The proposal comes as the government faces a sharp decline in electricity demand and an oversupply in the gas sector. High power tariffs have encouraged many consumers to install solar systems, further reducing grid consumption. Earlier, the Power Division’s plan to cut the solar buyback rate to Rs. 10 per unit faced public backlash and was eventually rejected by Prime Minister Shehbaz Sharif.
At the same hearing, NEPRA also discussed multi-year tariff petitions from MEPCO and GEPCO for the 2025–26 to 2029–30 period. Company representatives said that introducing fixed charges would help improve their financial sustainability. Officials from the Power Division warned that the rising burden of capacity charges was falling mainly on consumers who still rely on the grid.
The regulator also noted delays in payments to solar net metering users and criticized GEPCO for installing advanced metering infrastructure without proper authorization. MEPCO, however, reported achieving 100% recovery targets for fiscal year 2024–25, although some payments remain pending.
To slow the shift to solar, the government has launched a three-year incentive program offering lower rates for additional electricity consumption. This step aims to encourage consumers to use more grid power and stabilize the distribution companies’ revenues.
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