ISLAMABAD - The stakeholders have rejected the Nepra move to downward revise solar net metering rate to Rs 9 per unit from the existing Rs19.32 per unit, arguing the regulator is not legally authorised to change the tariff during the term of agreement/licence.
The stakeholders further argued that instead of moving against the IPPs which are making Rs 1400 billion as capacity payments annually, Nepra preferred to move against the small net metering distributed generators who are getting a payback of merely Rs 90 million.
The stakeholders and other participants expressed these views in a public hearing organised by the power regulator on the Nepra’s (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.
The hearing was presided over by Nepra Chairman Tauseef H Farooqi. Interestingly, there was no representation from the Power Division or government side in the hearing and Nepra chief was not even ready to listen to the arguments of the participants. One of the participants, while responding to the chairman’s behaviour said, “Why you have invited us for hearing if you are not ready to listen to us.”
One stakeholder alleged that Nepra is discouraging the solar net metering customers. “You are forcing the consumers to buy expensive electricity from IPPs’ at Rs 32/unit,” he further alleged. Another participant claimed that the Nepra move would strongly discourage the new entrants in the net metering sector.
However, Nepra chairman, while rejecting the claim said, “we are not discouraging the solar energy as we are adding a renewable capacity of 10,000MWs to the system.”
Nepra officials informed the hearing that there are 20,700 net metering power generators in Pakistan and they are getting a return of Rs 90 million for the export of power discos. A distributed generator challenged the Nepra’s jurisdiction regarding changing the existing net metering distributor generators power tariff and said that Nepra is not authorised to make amendment to the tariff during the agreement/ licence’s term. He argued that in regulation 14, a sub-regulation (5) was inserted, which reads “The Authority may 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 agreement/licence.”
However, Nepra chief claimed that he can make amendment to the terms of the IPPs and net metering consumers. Nepra Member Sindh, Rafique Ahmad Shaikh said that there is no mention of tariff fixing in the rules and is only net off of access units. However, member Sindh was contested by an official of Nepra who said that there is mention of tariff.
Nepra chairman further said it is for the netting off of the cost of access units. “We think that Rs9/unit should be paid for access units,” he said, adding, the remaining Rs10.32/unit should go to the remaining 36 million power consumers who are paying high cost of the electricity