The National Electric Power Regulatory Authority (NEPRA) intends to amend its rules for net metering applicants who have installed solar systems in their homes.
Consumers with solar systems installed in their homes aimed to avoid high electricity bills in Pakistan are also now under serious ‘threat’.
The country’s electricity supply regulator, NEPRA, is going to amend its rules in such a way that the users supplying power to WAPDA through net meter would likely suffer a loss of up to 20% while some consumers may now have to pay the bill.
Concerning the situation, a number of consumers have written to the registrar of the National Electric Power Regulatory Authority (NEPRA) to register their protest against the proposed amendment to its rules, calling it a discouragement of solar energy in the country.
A loss of up to D may occur while some consumers may still have to pay the bill.
The Pakistan Solar Association has also expressed its reservations over the notice issued by NEPRA last month, according to which the electricity supply companies will now buy the electricity supplied from the homes of solar consumers at a lower price.
Notably, a notification was issued by NEPRA on August 24 which was also published in newspapers.
The notification essentially states that NEPRA is amending the Renewable Energy Rules i.e. Distributed Generation and Net Metering Regulation, 2015 under which solar consumers will now be charged the national average price of electricity instead of the national average price of energy per unit.
The authority has sought public feedback on it within 30 days, after which NEPRA will finalize the drafting of the law.
Waqas Musa, a member of the executive committee of the Pakistan Solar Association revealed that with the new amendment, consumers who generate electricity from solar panels will face difficulties because the price of electricity generated by them will be reduced by 10 to 20 percent.
The salient features of the proposed amendments are:
- Single-stage, two-envelope bidding
- Straight-Line tariff
- 70 percent dollar indexation of tariff
- Benchmark tariff by NEPRA
- Guaranteed purchase of power
- Land and interconnection to be provided by the government
- Exemption on all import-related duties and taxes
- The existing Energy Purchase Agreement (EPA) and Implementation Agreement (IA) will be used
- COD within 12 months of EPA signing
- Term: 25 years on a BOOT basis
- 15 percent income tax
- Payment guaranteed on 60th day after invoice through Bank Debit
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