Govt plans net metering rate cut to ease consumer burden

March 09, 2025 (MLN): The government is considering a reduction in net metering rates for new contracts to prevent an increasing financial strain on electricity consumers, according to a post on X (formerly Twitter) by Federal Minister for Power Owais Leghari.

Net metering, introduced in January 2018 under then-Prime Minister Shahid Khaqan Abbasi, has benefited over 283,000 users but has also placed Rs150 billion burden on other electricity consumers, who are paying an additional Rs1.5 per unit to cover net metering users’ profits.

To address this, the proposed rate adjustment will apply only to new contracts, while existing agreements will remain unaffected.

Leghari stated that despite the revision, new users would still see a 4 to 5-year payback period, keeping net metering an attractive investment.

The move aims to balance renewable energy incentives while protecting the 40 million electricity consumers from rising costs.

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