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Rising net metering connections strain government finances and increase electricity costs for consumers

Islamabad: The increasing number of net metering connections across Pakistan has created financial concerns for the government, adding a significant burden on electricity distribution companies and general consumers.

As of December 2024, net metering connections have reached 4,135 MW nationwide, with 3,678 MW linked to electricity distribution companies and 457 MW connected to K-Electric.

According to Power Division sources, the financial impact of net metering on consumers has surged to PKR 159 billion, compared to PKR 102 billion in October 2024-reflecting an increase of PKR 57 billion in just four months. This rise translates into an additional PKR 1.33 per unit burden on general electricity consumers.

Experts emphasize that without revising the electricity buyback rates, shielding the public from rising electricity costs will be difficult. To protect general consumers, the government may need to reduce the buyback rates offered under net metering.

Sources further revealed that the majority of net metering beneficiaries belong to the elite class, making it imperative to reassess the financial implications of this policy.