The Power Division has temporarily shelved the highly anticipated net metering tariff rationalization plan, citing the recent increase in electricity tariffs and the resulting societal pressure.
Initially directed by the Prime Minister to finalize the plan by May 2024, the deadline was subsequently extended multiple times, with the latest due date set for September 30, 2024.
According to sources, the Power Division has communicated to the Prime Minister’s Office that, given the current sensitivity surrounding the tariff hike, discussions will resume at a more appropriate time, though no specific date has been provided.
While the proposal for the net metering buyback rate is ready, it awaits approval to move forward with reforms and stakeholder consultations.
The Power Division is working on restructuring the National Transmission and Dispatch Company (NTDC) and evaluating the introduction of a Competitive Electricity Market.
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The delay comes as the government seeks to address various challenges within the power sector, with key discussions planned with international stakeholders, including the World Bank, in the coming weeks.
