In a significant development impacting solar energy users across Pakistan, power distribution companies (Discos) have unilaterally stopped accepting new applications for net metering. The country's power regulator has now stepped in, demanding an immediate explanation for this controversial move.
NEPRA Flags Serious Violation, Issues Ultimatum
The National Electric Power Regulatory Authority (NEPRA) has expressed serious concern over the halt in new net metering registrations by several Discos. In an urgent letter addressed to the chief executive officers of all twelve Ex-Wapda distribution companies and K-Electric, NEPRA stated that the matter is a violation of applicable rules.
The regulator has given the Discos a strict deadline of three working days to submit a detailed report on why they have stopped entertaining new applications. NEPRA has directed that this matter be treated as "Most Urgent." The letter confirms that the authority has taken notice of the widespread stoppage within the respective jurisdictions of the Discos.
Behind the Halt: Awaiting New Prosumer Regulations 2025
According to an official source familiar with the matter, the Discos have paused new registrations while waiting for NEPRA to finalize the new Prosumer Regulations 2025. The source stated that it would not be wise to register new prosumers under the old framework when new regulations are imminent.
Solar energy users who both produce and consume electricity are known as 'prosumers'. The source revealed that Discos aim to avoid accumulating consumers under the old 2015 regulations, as existing consumers will likely be exempt from any changes introduced in the 2025 rules. Therefore, they prefer to wait for the new regulatory framework before processing any further applications.
Regulatory Transition in Progress
This situation arises amid an ongoing transition in the regulatory landscape. Last week, NEPRA formally released the draft Prosumer Regulations, 2025 for public consultation. The draft seeks to replace the existing Alternative and Renewable Energy Distributed Generation and Net Metering Regulations, 2015.
The process moving forward is clear:
- NEPRA has invited public comments on the draft regulations within a 30-day period.
- After this consultation window, the authority will conduct a public hearing.
- Following the hearing, NEPRA will issue its final decision on the new regulations.
The current standoff highlights the tension between Discos seeking regulatory clarity and potential prosumers whose plans to adopt solar energy are now in limbo. The nation awaits the Discos' formal response to NEPRA's urgent directive, which will shed more light on the rationale behind halting a key policy for promoting renewable energy.
