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Friday, July 12, 2024  
05 Muharram 1446  

Govt to burden solar panel users after failing to control loadshedding

The government is obligated to pay IPPs
The image shows solar panels. Photo via Reuters.
The image shows solar panels. Photo via Reuters.

After failing to resolve the ongoing issues of electricity shortages, expensive electricity bills, and load-shedding, the government is poised to target and burden the pockets of those consumers who have turned to solar power to generate their own electricity.

The government has decided to modify the net-metering charges in order to benefit the Integrated Power Producers (IPPs) and Discos (electricity distribution companies).

This move will reduce the rate at which Discos purchase electricity from consumers who generate their own solar power.

As a result, the benefit for domestic consumers who generate electricity through solar panels and sell it to the government will decrease, while the government will continue to make payments to the IPPs.

Energy expert Abubakr Ismail states that the change in the net-billing mechanism will directly impact the consumers. Whether the independent power producers (IPPs) or self-generating consumers choose to generate electricity or not, the government is obligated to make payments to them based on their production capacity.

According to a report, the total value of circular debt has reached 23.10 trillion rupees, with the share of Independent Power Producers (IPPs) reaching up to 18 trillion rupees. In an effort to reduce this deficit, the burden is being shifted onto the consumers.

Read more

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Pakistan

Loadshedding

solar panels