ISLAMABAD   -   Following strong opposition from the stakeholders, National Electric Power Regulatory Authority (NEPRA) has decided not to amend the existing Alternative and Renewable Energy Distributed Generation and Net Metering Regulations, 2015.
In its decision on NEPRA (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations, 2015, the regulator said that it has carefully reviewed the submissions of the stakeholders, and is also cognisant of the vision of the government for induction of cheap and clean renewable energy into the system; it has been decided not to amend the net metering regulations.
Giving the background, the decision said that NEPRA initiated the process of amendments in the National Electric Power Regulatory Authority (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 (the Regulations) and proposed the following amendment; In Sub-Regulation 5 of Regulation 14 of the Regulations, the word “National Average Power Purchase Price (NAPPP)” be replaced with “National Average Energy Purchase Price (NAEPP)”.
The process for amendment in the regulations was initiated, keeping in view increase in National Average Power Purchase Price (NAPPP), from existing Rs12.95/kWh to Rs19.32/kWh, after notification of revised consumer end base tariff by the federal government with effect from July 25, 2022. The authority, however, considering the comments received from various stakeholders and media reports, decided to conduct a public hearing in the matter, which was accordingly scheduled for September 27, 2022. The public/consumers, during the hearing, strongly opposed the proposed amendments citing reasons that electricity through net metering is one of the most efficient methods incurring low distribution losses, with no investment for distribution infrastructure, and the proposed amendment in the regulations would discourage net metering /solar installation.
The authority has carefully reviewed the submissions of the stakeholders, made during the hearing and in writing and is also cognisant of the vision of the government for induction of cheap and clean renewable energy into the system. Although, net metering is predominantly based on the concept of minimising the electricity cost through roof top solar self-generation for self-consumption and not for commercial sale and DISCOs have to maintain Grid and Generation Capacities for the Net Metering Consumers during non-solar hours as well. However, at the same time, the economic benefits of net metering in terms of displacement of costlier electricity, savings of foreign exchange and incurring minimal losses, cannot be ignored. Moreover, the quantum of net metering units, at present is very low i.e. below 1 percent of the total energy purchased by DISCOs