By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed the Power Division to file a review appeal against recent changes by the National Electric Power Regulatory Authority (Nepra) that shift solar consumers from net-metering to net-billing, amid widespread criticism from lawmakers.
The directive came after Nepra on Monday altered contract terms for all existing and future net-metered solar users, known as prosumers, in a move aimed at curbing rising solar energy penetration and protecting the state-owned power network, which officials have described as expensive and inefficient.
A statement from the Prime Minister’s Office (PMO) said Sharif had taken “immediate notice” of the matter and instructed the Power Division to lodge the appeal before Nepra “to ensure every possible safeguard of the existing consumer contracts”.
Sharif expressed concern that the burden of the 466,000 users benefiting from solar should not fall on the 37.6 million domestic consumers relying directly on the national grid, according to the PMO statement. “Power division should chalkout a comprehensive strategy in this regard,” Sharif was quoted as saying.
The prime minister issued these instructions while chairing a high-level meeting on the new Nepra regulations, attended by Deputy Prime Minister Ishaq Dar, Power Minister Awais Leghari, Economic Affairs Minister Ahad Cheema, Information Minister Attaullah Tarar, Minister of State for Finance Bilal Azhar Kiyani and the prime minister’s adviser Muhammad Ali. The development follows sharp outcry in the Senate from lawmakers across the political divide, including members of the ruling coalition partner Pakistan Peoples Party (PPP) and the opposition Pakistan Tehreek-e-Insaf (PTI), who opposed Nepra’s decision.
On Tuesday, Power Minister Leghari defended the regulator’s action in the Senate, arguing it was intended to ease the load on consumers. “Changing regulations according to the law and the Constitution is a regulator’s job,” Leghari said, adding that he refused to step back from this. “This is not policy; there should be clarity on that,” he maintained.
Stakeholders and policy experts have warned that the proposed Prosumer Regulations 2025 could undo a decade of progress in citizen-led energy initiatives. Under the new rules, existing registered prosumers will immediately transition to net-billing from net-metering, with export units credited for only one month rather than the previous three months. All other terms of their contracts will remain in place until the end of the seven-year period. Net-billing involves the distribution company (Disco) purchasing electricity generated by a prosumer’s facility, then billing consumption at rates of Rs37-55 per unit after crediting supplied electricity at the National Average Energy Purchase Price (NAEPP) of around Rs10 per unit.
The regulations prohibit prosumers from installing solar systems for net-metering that exceed their original sanctioned load, effectively halving the capacity limit. For new prosumers, contracts will last only five years, with export units accepted at Rs11 per unit compared to Rs26 under existing arrangements. Imports from Discos will be billed separately at Rs37-55 per unit, based on the slab, excluding taxes, surcharges and duties.
Surplus generation exported to Discos will be calculated at Rs26 per unit for existing prosumers and around Rs10 per unit for future ones, with the net difference billed to consumers – a departure from the prior unit-for-unit exchange system. Government officials and the regulator have attributed grid challenges and elevated capacity charges to prosumers with solar capacities above approved levels and non-metered solar homeowners, though the new regulations do not address these issues directly. Nepra has said the updated prosumer regulations introduce clearer procedures, stricter technical requirements and a revised billing approach to better incorporate small-scale generation into the national grid while maintaining system stability.
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