PM Shehbaz says new package is being prepared to reduce electricity tariffs


Islamabad: Prime Minister Shehbaz Sharif has assured that there will be no change in the government’s solar energy policy and priorities.
He instructed relevant authorities to clear any confusion among the public about the solarisation policy by providing clear facts and figures.
The prime minister gave these directions while leading a review meeting on the Power Division's issues. He emphasized that the government's commitment to solar energy and the promotion of renewable energy remains a top priority.
This statement comes after the Economic Coordination Committee (ECC) of the Cabinet approved changes to the net metering rules for rooftop solar installations. These changes included a reduction in the buyback rate for solar energy, which was lowered from Rs27 to Rs10 per unit.
The decision to reduce the buyback rate follows a rise in the number of solar net-metering consumers, which has led to financial challenges for grid consumers. As per the approved changes, the buyback rate will be revised from the National Average Power Purchase Price (NAPP) to Rs10 per unit. The ECC also approved that the National Electric Power Regulatory Authority (Nepra) would be allowed to update this buyback rate periodically, ensuring it reflects market conditions.
It was made clear that the new buyback rate will not apply to current net-metered consumers who already have valid licenses or agreements under the Nepra (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. These existing agreements will remain in effect until they expire.
Federal Minister for Energy, Sardar Awais Ahmad Leghari, had previously mentioned that the number of solar net-metering consumers would increase following the implementation of the new regulations.
During the meeting, Prime Minister Shehbaz also directed the speedy resolution of all legal matters related to the liquidation of power generation companies and urged faster progress in the privatization of power distribution companies.
The prime minister also mentioned that a new package to reduce electricity tariffs is being prepared and will be announced soon to help lower electricity costs for the public.
Additionally, he directed the Power Division, Water Resources Division, and Petroleum Division to improve coordination to develop a comprehensive strategy for the country’s energy sector.
The meeting was attended by Federal Minister for Power Division Sardar Awais Leghari, PM Advisor Dr Tauqeer Shah, and other senior government officials. Federal Minister for Economic Affairs Ahad Khan Cheema and Advisor to PM Muhammad Ali joined the meeting via video link.

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