Federal Minister for Energy, Awais Leghari, took to X (formerly Twitter) on Saturday to hit back at former Finance Minister Miftah Ismail for his criticism on recently proposed reduction in solar net-metering rates.
Recently, the government has proposed a reduction in solar net-metering rates in order to cover massive losses from DISCOs as negotiations with International Monetary Fund (IMF) continue.
The proposal came after IMF expressed its concerns on reduced demand in national grid as more and more consumers opt for solar energy. Pakistan has recently experienced a more than 10 per cent decline in grid electricity demand.
IMF is concerned as more citizens move away from the national grid, the government may find itself in more trouble reducing the circular debt.
Former Pakistan Muslim League-Nawaz (PML-N) leader, Miftah Ismail, lashed out at the government on Saturday, writing on X: “Govt is ready to cut electricity rates! Sorry but not the rate at which it sells us electricity but the rate at which it buys from consumers with solar panels. It is reducing that rate from Rs 27 to Rs 10. Another sacrifice citizens are to make for rulers.”
Leghari, however, did not hold back, explaining: “Net metering was approved in January 2018 by then-Prime Minister Shahid Khaqan Abbasi and myself as Power Minister, during the last year of the PML-N government to incentivize investment in on-grid solar systems.”
“Since then, the response has been overwhelming, with over 283,000 beneficiaries of this policy to date. However, this has now placed a Rs. 150 billion burden on the rest of the consumers.”
Leghari added: “To address this, only the rates for new contracts are being proposed for reduction so that this burden does not continue to grow. Existing signed contracts will remain unaffected. At the Power Division, our duty is not only to the 283,000 current and future net metering users but also to the 40 million consumers who are paying Rs. 1.5 per unit extra to finance net metering users’ windfall profits.”
“Please do not mislead the public for cheap popularity, dear Miftah Sb,” the Energy Minister concluded.
