The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Aman Paracha, has condemned the repeated and oppressive changes to the net metering regulations by the federal government. He rejected the government’s new alternative energy policy, stating that forcing solar net metering consumers to sell electricity at Rs. 10 per unit instead of Rs. 27 per unit is akin to an act of oppression and an open war against them.
Over two months ago, the federal government mandated that solar energy consumers sell electricity at just Rs. 10 per unit, down from Rs. 27 per unit. Now there are reports that the same action is being repeated, with consumers once again being forced to sell electricity at Rs. 10 per unit instead of Rs. 27. Pracha stated that this process is equivalent to confiscating the rights of alternative energy consumers and playing with the future of Pakistan’s renewable energy sector.
The Vice President of FPCCI, Aman Paracha, stated that the Economic Coordination Committee (ECC) of the federal cabinet has approved amendments to the existing net metering regulations to alleviate the growing financial burden on grid consumers. However, he emphasised that if these amendments had been made in consultation with the FPCCI leadership, better results could have been achieved.
Aman Paracha pointed out that people have made significant investments in solar systems because the government has failed to provide reliable electricity, leading to frequent load shedding and rising electricity prices. He criticized the government’s failure to curb electricity theft, which has resulted in additional burdens on other consumers.
He further stated that consumers are being forced to buy electricity from the national grid at rates of Rs. 65 or more per unit, while the federal government is not encouraging consumers to transition to green energy but is instead playing with them. The 550% price difference is cruel and an economic exploitation of the common people.
Aman Paracha also mentioned that currently, 283,000 consumers are producing 4,300 megawatts of electricity through solar systems. He suggested that these consumers should use batteries to store excess energy. He highlighted that solar systems are the future of Pakistan’s energy sector as they are fuel-free.
He criticised the federal government for continuing to support power sector mafias, corruption, and incompetent individuals, resulting in annual losses of Rs. 600 billion due to electricity theft and unpaid bills. Instead of addressing these severe issues, the government is punishing those who are working to make the country energy self-sufficient.
Aman Paracha warned that this policy could devastate Pakistan’s solar energy industry, making solar energy unaffordable for domestic and commercial consumers. He emphasized that this approach would hinder both local and foreign investment in renewable energy and increase dependence on the outdated and failing grid. He also stated that the government’s policy would force the public to buy electricity at unaffordable rates, thus eliminating opportunities for green energy while placing a heavy financial burden on the national exchequer.
However, Paracha acknowledged that Prime Minister Shehbaz Sharif had opposed the approval of the net metering policy for solar consumers, but he criticized the bureaucracy within the Power Division, which continues to push for anti-public decisions. If the plans of these elements succeed, the cost of electricity generated from solar panels will rise.
Aman Paracha also advised the government to refrain from imposing taxes on solar panel consumers in the federal budget and avoid imposing additional taxes on the import of solar panels.
