The Pakistan Solar Association (PSA) is strongly urging the authorities to continue supporting net metering, considering it a crucial pillar of the nation's sustainable energy future. During a recent press event, Amir Chaudhry, the chairman of PSA, pointed out that the real issue at hand is the widespread energy theft problem, which leads to a significant revenue shortfall for distribution companies. This shortfall, in turn, results in a continuous increase in circular debt within the energy sector.
The Power Division Secretary has revealed alarming statistics, stating that electricity worth Rs380 billion is stolen annually in Pakistan. He further mentioned that the impact of this stolen electricity, amounting to Rs520 billion, would be passed on to consumers through their bills starting from the current fiscal year.
Chaudhry expressed deep concern about the alleged dissemination of incorrect information and false propaganda by stakeholders from Independent Power Producers (IPPs) and Distribution Companies (DISCOs). He believes this misinformation is an attempt to divert attention away from the real issue and undermine trust and progress in the solar energy industry.
These concerns have arisen amidst reports that the government is considering issuing an ordinance to further regulate net metering in the country. This move is prompted by concerns that solar panel installations on rooftops have unintentionally increased capacity payments to IPPs. The proposed ordinance would also criminalize non-payment of electricity bills.
Chaudhry strongly opposes this decision, describing it as an erroneous and misleading approach that could lead to higher electricity prices in the country. Net metering, he explains, is a sustainable energy solution that allows consumers to generate their own electricity through solar panels and feed excess power back into the grid. This not only reduces electricity bills but also contributes surplus energy to the national grid.
The PSA chairman emphasizes that electricity theft places an additional burden on bill-paying customers who end up footing the bill for stolen electricity. The cost of financing circular debt, resulting from the recovery shortfall, is also passed on to customers in the form of FC surcharge and PHL surcharge. Moreover, electricity bills are already laden with various taxes, including an electricity duty of 1.5%, a GST of 18%, additional taxes of 5% and 3%, and even advance income taxes ranging from 5% to 12% of the total bill value.
Chaudhry argues that the imposition of multiple taxes significantly inflates the cost of electricity, motivating more consumers to avoid paying their bills, exacerbating the overall problem. He expresses dismay that authorities seem to be targeting the solar energy sector rather than focusing on improving governance and vigilance to combat electricity theft or re-evaluating the impact of excessive taxation on electricity bills.