On Tuesday, the administration informed the Senate Standing Committee on Power that it would cut the net metering fee for rooftop solar power systems.
Government officials also claimed at the conference that the circular debt had been locked at Rs. 2.31 trillion.
During the discussion, Power Secretary Asad Rehman Gilani stated that recent fuel cost revisions had exceeded tariff forecasts due to increasing insurance and tanker prices from the Middle East.
Concerns were expressed regarding the net metering cost, which is now fixed at Rs. 22 per unit, with government officials recommending a possible drop.
Caretaker Power Minister Muhammad Ali and Secretary Gilani lobbied for a lower tariff, claiming that wealthy metropolitan households can afford higher rates than smaller consumers.
They emphasised the need of equity, arguing that the existing tariff disproportionately punishes poorer consumers.
The secretary briefly highlighted that the circular debt, totaling Rs. 2.310 trillion, had been successfully managed as of December 21, 2023, meeting the IMF’s expectations.
He attributed this to effective power sector management, tariff modifications to mitigate losses, and an anti-theft effort that has resulted in Rs. 85.7 billion in recoveries since August 2023.
The committee also examined the awarding of contracts for the Dasu project’s transmission line.
The contracts under review included transmission line construction businesses such as Sinohydro Corporation and Harbin Electric International, as well as German consultancy GOPA Intec.
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