Islamabad: Federal Minister for Power Awais Leghari on Wednesday rejected the government’s plan to impose a metered tax on solar energy.
The government told a local TV channel that it would not withdraw its rules on net metering of installed solar systems.
However, the minister said that the problem can be discussed in the coming year as the net settlement can lead to financial losses and increase the circular debt.
Net metering is a billing tool that allows consumers to send excess energy generated from solar panels to the local grid in exchange for a credit on their monthly electricity bill.
Noting that potential payments are a major challenge for the government, Leghari said reforms have been implemented to improve the transmission system over the next four years.
He urged the people to switch to solar energy to reduce the load on the power generation system.
The minister said steps are being taken to improve customer care, check electricity theft and take action against piracy in distribution companies. He said it would ensure resilience against service delivery.
Leghari also pointed to privatization as a pipeline for long-term contracts to secure management contracts. So privatization can be carried out after added value,” he said.
