NEPRA introduces new regulations for net metering users

Separate meters required for purchase, supply of electricity; users won't sell excess electricity to other consumers

KARACHI:

National Electric Power Regulatory Authority has unveiled a new set of rules and regulations aimed at managing the electricity purchase and supply process for net metering users.

The regulations bring significant changes that will affect both new and existing users of distributed generation facilities, such as solar, wind, and biogas power systems.

Under the new rules, net metering users—referred to as “prosumers”—will face separate tariffs for electricity purchase from the grid and supply to the grid. The electricity company will buy electricity from the prosumers at the National Average Energy Purchase Price, while supplying electricity to users based on the existing tariff rates.

In addition to these changes, the regulations introduce several new requirements and definitions. A key change is the introduction of a new term, "Prosumer," for net metering users.

These users will now be subject to more specific rules concerning the amount of electricity they are permitted to produce, with NEPRA retaining the power to review their production capacity.

The new regulations also require separate meters for the purchase and supply of electricity for net metering users. Furthermore, users will not be allowed to sell excess electricity to other consumers, ensuring that the generated power is only used for their own consumption or sold back to the grid.

Read More: ECC approves Rs200b power subsidy to keep circular debt within IMF-agreed limits

For those already enrolled in net metering agreements, these new rules will apply once their current contracts expire. Existing users will not be able to transfer or sell their excess electricity to other consumers, a major shift from the previous guidelines.

Moreover, the new rules stipulate that any user cannot generate more electricity than their load capacity, ensuring efficient energy production and consumption.

The implementation of these new rules is part of NEPRA’s ongoing efforts to better manage Pakistan’s growing net metering sector and ensure fair and efficient electricity transactions.

The developments are aimed at regulating the growing sector of net metering in Pakistan, helping to standardize the operations of distributed generation systems and maintaining the stability of the national grid.