Awais Leghari, the Federal Minister for Power Division, recently addressed the rumors regarding the government’s intention to tax solar net metering. Speaking on a private news channel, he categorically denied any such plans. He assured that the existing regulations related to net metering for installed solar systems would remain intact.
However, Leghari did not rule out the possibility of revisiting the issue in the future. He pointed out that net metering could potentially lead to fiscal losses and an increase in circular debt. For those unfamiliar, net metering is a billing mechanism that credits solar energy system owners for the surplus power added to the grid.
The minister acknowledged that capacity payments posed a significant challenge for the government. He revealed plans for reforms aimed at enhancing the transmission system over the next four years.
Leghari encouraged the public to embrace solar power as a means to alleviate the burden on the power generation system. He also outlined measures being taken to improve customer service at distribution companies, curb power theft, and crack down on pilferage, promising zero tolerance against service delivery.
In a hint towards future plans, Leghari mentioned the potential privatisation of certain departments. He stated that long-term contracts for operational management were being prepared, which would enable privatisation after value addition.
