Disincentivising solar power

Power distribution companies (DISCOs) are once again seeking government intervention to cover up their own mismanagement, leaving ordinary citizens to effectively foot the bill. In a move that penalises citizens for seeking affordable and sustainable electricity, the DISCOs want Nepra, the regulator, to approve fixed charges on solar net metering. The charge is being led by Multan Electric Power Company and Gujranwala Electric Power Company and hinges on the argument that solar net metering is leading to underutilisation of grid capacity and thus causing the distributors significant financial losses.

The Ministry of Energy has echoed this claim, accusing solar users of avoiding their share of capacity charges, thus burdening those still connected to the national grid. But this argument ignores the root cause of the problem - the exorbitant electricity tariff of over Rs65 per unit in many cases. Meanwhile, home solar users' excess generation is sold to the grid for just Rs10 per unit, compared to most other countries, which use the exact same prices and net billing practices, and only cap the maximum amount the government will buy from home users.

It is thus profoundly unjust to punish consumers for making rational, cost-effective decisions, especially when the government had actively promoted solar adoption as a solution to the energy crisis. DISCOs and the government should focus on addressing the colossal capacity payments to power producers and approximately Rs600 billion lost annually to theft and bill under-recovery. But instead of addressing these systemic issues, the so-called public utilities are targeting citizens who have invested their own capital to generate clean power, effectively turning their investment into liabilities.

If the authorities are serious about a sustainable energy future, they should drop such punitive measures and focus on genuine reform. The goal should be to encourage, not penalise, the transition to renewable energy.