The federal government has updated the billing framework for solar power users, eliminating financial incentives for surplus electricity fed back into the national grid. Under the revised policy, any excess electricity supplied by consumers to distribution companies will be recorded as zero units, effectively ending the previous relief offered through the net metering system.
In a significant development, an “export MDI check” has been introduced to monitor consumers generating electricity beyond their approved capacity. This means that power produced from additional, unapproved solar panels will no longer receive any financial compensation, even if it is exported to the grid. Furthermore, relief based on export meter readings for excess generation has also been withdrawn.
Meanwhile, the National Electric Power Regulatory Authority (NEPRA) imposed fines totaling Rs60 million on the Central Power Purchasing Agency (CPPA) and the National Grid Company for irregularities related to fuel cost adjustments in January 2024. NEPRA’s ruling highlighted that the average fuel cost for the month was Rs14.60 per unit, substantially higher than the benchmark of Rs7.49 per unit.
Although a fuel price adjustment of Rs7.13 per unit was requested, electricity prices were ultimately increased by Rs7.05 per unit. The regulator noted that electricity generated from more expensive sources such as furnace oil and diesel was prioritized over cheaper alternatives like LNG and nuclear power, resulting in elevated costs. During this period, power worth over Rs31 billion was produced using diesel and furnace oil.
NEPRA fined CPPA Rs10 million for failing to justify the cost hike, while the National Grid Company was penalized Rs50 million for delays in developing transmission infrastructure. These delays obstructed the integration of more affordable electricity from local coal projects. Both entities have been instructed to deposit the fines into the national treasury within 15 days.
