NEPRA Begins Efforts to Adjust Solar Energy Rates

The National Electric Power Regulatory Authority (NEPRA) has started working on changing the rates for solar energy, sparking concerns among consumers who believe this move could lead to significant losses for them, while Independent Power Producers (IPPs) may stand to gain.

According to sources in the Ministry of Power, the government has tasked NEPRA with revising the solar energy rates. It is reported that a proposal is under consideration to lower the solar rate from Rs. 23 per unit to Rs. 10 per unit.

In the coming phase, further proposals may be introduced to eliminate solar payback rates, meaning consumers would no longer receive payments for any excess electricity generated by their solar power systems. Additionally, the new system will require consumers to use 100% of the energy generated by their solar panels for personal consumption.

Currently, consumers are compensated with about Rs. 125 billion under the solar payback scheme. However, the government is preparing to halt the rapid expansion of the solar sector, fearing the increasing difficulty in making payments to IPPs. The solar system is emerging as a viable alternative to traditional energy producers, which is putting pressure on the government to reconsider its approach.

The report highlights the growing challenge the government faces in managing payments to IPPs, who have long received substantial sums from the public while continuing to provide unreliable service and high electricity bills. In the past, several IPPs, including K-Electric, have been found guilty of illegal practices, adding to the public frustration.