The Pakistan Solar Association (PSA) is strongly urging the authorities tocontinue supporting net metering, considering it a crucial pillar of thenation’s sustainable energy future. During a recent press event, AmirChaudhry, the chairman of PSA, pointed out that the real issue at hand isthe widespread energy theft problem, which leads to a significant revenueshortfall for distribution companies. This shortfall, in turn, results in acontinuous increase in circular debt within the energy sector.
The Power Division Secretary has revealed alarming statistics, statingthat electricity worth Rs380 billion is stolen annually in Pakistan. Hefurther mentioned that the impact of this stolen electricity, amounting toRs520 billion, would be passed on to consumers through their bills startingfrom the current fiscal year.
Chaudhry expressed deep concern about the alleged dissemination ofincorrect information and false propaganda by stakeholders from IndependentPower Producers (IPPs) and Distribution Companies (DISCOs). He believesthis misinformation is an attempt to divert attention away from the realissue and undermine trust and progress in the solar energy industry.
These concerns have arisen amidst reports that the government isconsidering issuing an ordinance to further regulate net metering in thecountry. This move is prompted by concerns that solar panel installationson rooftops have unintentionally increased capacity payments to IPPs. Theproposed ordinance would also criminalize non-payment of electricity bills.
Chaudhry strongly opposes this decision, describing it as an erroneous andmisleading approach that could lead to higher electricity prices in thecountry. Net metering, he explains, is a sustainable energy solution thatallows consumers to generate their own electricity through solar panels andfeed excess power back into the grid. This not only reduces electricitybills but also contributes surplus energy to the national grid.
Read Top Stories
The PSA chairman emphasizes that electricity theft places an additionalburden on bill-paying customers who end up footing the bill for stolenelectricity. The cost of financing circular debt, resulting from therecovery shortfall, is also passed on to customers in the form of FCsurcharge and PHL surcharge. Moreover, electricity bills are already ladenwith 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 from5% to 12% of the total bill value.
Chaudhry argues that the imposition of multiple taxes significantlyinflates the cost of electricity, motivating more consumers to avoid payingtheir bills, exacerbating the overall problem. He expresses dismay thatauthorities seem to be targeting the solar energy sector rather thanfocusing on improving governance and vigilance to combat electricity theftor re-evaluating the impact of excessive taxation on electricity bills.
