Islamabad: Recent amendments to Pakistan's net-metering (prosumer) regulations have raised serious concerns among energy experts, who say the changes risk weakening regulatory credibility and derailing structural power-sector reform.

Dr. Khalid Waleed, Research Fellow at SDPI, described the amendments, notified by the National Electric Power Regulatory Authority (NEPRA), as reactive and incomplete, prioritizing short-term fiscal optics over long-term planning, regulatory independence, and the strategic use of distributed solar energy.

He noted that the timing of the decision is concerning, as two key positions within NEPRA remain vacant, reducing the scope for comprehensive deliberation on a policy with long-term economic, fiscal, and investment implications. 'Proceeding without a full Authority undermines the credibility of the regulatory process and weakens stakeholder confidence,' he added.

Experts also highlighted risks to regulatory autonomy. Net-metering affects household savings, industrial competitiveness, and grid economics. Decisions on such matters should rely on evidence-based analysis rather than short-term administrative pressures. Any perceived dilution of NEPRA's independence could set a problematic precedent for future sector governance.

Dr. Waleed criticized the philosophical approach of the amendments, saying they incorrectly treat distributed solar as the cause of Pakistan's electricity sector crisis. He emphasized that structural issues-such as rigid capacity payments, long-term take-or-pay contracts, and high electricity prices-are the real challenge, and net-metering merely exposes these inefficiencies.

The amendments also appear inconsistent with the National Electricity Plan 2023-2027, which prioritizes affordability, demand stimulation, system efficiency, and grid modernization, rather than suppressing demand or penalizing distributed generation. Experts argue that net-metering should be leveraged as a strategic asset, supporting objectives such as grid modernization, fiscal reform, and climate-aligned thermal generation transition.

Dr. Waleed highlighted several opportunities missed by the hasty amendments:

- Aligning international development finance, such as World Bank Country Partnership Framework funds, toward grid modernization and advanced metering, rather than marginal capacity additions.

- Integrating distributed solar into social protection, providing solar systems to vulnerable consumers to reduce electricity costs and subsidies sustainably.

- Using accelerated solar adoption to facilitate the early retirement of inefficient coal-fired power plants and repurpose sites for grid-scale storage.

He warned that the amendments provide only short-term cosmetic relief, failing to address excess capacity, inflexible contracts, or misaligned tariffs, while potentially discouraging investment and penalizing consumers who responded rationally to price signals.

Dr. Waleed concluded that sustainable reform requires transparent decision-making, complete institutions, regulatory independence, and a planning philosophy that tackles structural inefficiencies, rather than masking them with temporary fixes.