The country’s apex trade body has voiced strong opposition to the government’s recent decision to reduce the buyback rate for solar net-metering electricity from Rs27 per unit to Rs10 per unit.
Earlier this month, the Economic Coordination Committee (ECC) of the federal cabinet approved reduction in the buyback rate for net-metering electricity, attributing the decision to “significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers”.
“The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers,” a statement from the Finance Division said then.
Addressing a press conference on Thursday, Saquib Fayyaz Magoon, senior vice president at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), shed light on net-metering and net billing policies.
He explained that the initial agreement was based on net-metering, which ensured a unit-for-unit exchange.
“However, the new policy focuses on net billing, where consumers are charged Rs50 per unit, while the government purchases units from them at Rs27.”
Magoon urged the government to maintain the net-metering policy, criticising “frequent changes in policies and decisions”.
He also hailed a federal cabinet decision to consult all stakeholders on net-metering policy after backlash witnessed on the decision to cut the buyback rate for solar net-metering electricity.
“The cabinet’s decision was timely as it prevented a possibility of a surge in import demand of batteries and inverters,” Magoon said.
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