NEPRA Rejects Lower Tariffs For Solar Units

Islamabad: The National Electric Power Regulatory Authority (NEPRA) rejected a proposal to lower the electricity rates for extra power generated for rooftop solar power producers.

However, it had considered lowering the met metering users’ tariff from 19.32 per unit to Rs 9 per unit.
Power distribution companies like DISCOs purchase extra electricity from plants that generate energy through solar at Rs 19.32 per unit. However, DISCOs need a reduction in the price to Rs 9 per unit.

Ironically, DOSCOs sells electricity to customers for about Rs 30 per unit. They need to buy excess electricity under the net metering system at lower rates from domestic consumers using solar panels on their rooftops.

On Monday, a decision was approved in which the power sector regulator said that the net metering users could continue selling additional electricity to DISCOs at Rs 19.32 per unit.

On the other hand, NEPRA presented its decision on a proposed amendment to the NEPRA (alternative and renewable energy) distributed generation and net entering regulations 2015.

In addition, the regulator held a public hearing to get feedback on the amendments in light of media reports and comments from various stakeholders.

According to them, the Authority carefully considered the stakeholder’s submission established during the hearing and in writing and authentically reviewed the government’s vision to include affordable and clean renewable energy in the system.

According to NEPRA, the economic benefits and figures were also brought to notice by stakeholders.
According to the regulator, “Because of the above discussion, the authority has decided not to amend the existing

NEPRA (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations 2015″.
In addition, he also stated that the net metering users would continue to sell additional electricity to DISCOs at Rs 19.32 per unit.

This indicates that net metering has more chances of promotion in the country.
Though, the coalition government planned to add 10,000 megawatts of solar power to the national grid when the demand to lower power rates for net metering users who wanted to export excess electricity to DISCOs.

Hence, the government has planned to impose cheaper electricity into the system due to higher regional electricity rates. However, the government has also planned to increase rates in the coming days.

The solar sector was unhappy with the decision when several solar projects were in the pipeline.
During a public hearing held earlier, the solar power industry said that ” it would discourage the installation of rooftop solar panels. In total, there are 20,700 rooftop solar power generators in Pakistan.
Tauseef H Farooqui, a NEPRA chairman, gave his remarks while chairing a public hearing on the proposed amendment to the NEPRA, distributed generation, and net entering regulations 2015.

In addition, he also said that they did not want to discourage electricity production through solar sources.
On December 20, 2017, NEPRA proposed the first amendments to those rules by issuing SRO 1261 (J)/2017, in which the term of the agreement between the distribution company and distributed generator was increased from 3 to 7 years.

In regulation 14, a sub-regulation (5) was imposed, which stated that “the Authority might determine the tariff payable by the Distribution Company to the Distributed Generator from time to time: provided. However, the tariff once awarded to a Distributed Generator shall remain valid for a term of the License/Agreement”.

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