Awais Leghari, the Federal Minister for Power Division, recently addressed rumors regarding the government’s alleged intention to tax solar net metering. Speaking on a private news channel, he categorically denied any such plans. Leghari assured the public that the existing regulations pertaining to net metering for installed solar systems would remain intact.
However, he did not completely rule out the possibility of revisiting the issue in the future. Leghari highlighted concerns that net metering could potentially lead to fiscal losses and an increase in circular debt. Net metering is a billing mechanism that credits solar energy system owners for surplus power added to the grid.
The minister acknowledged the significant challenge posed by capacity payments for the government. He disclosed plans for reforms aimed at enhancing the transmission system over the next four years.
Encouraging the public to embrace solar power, Leghari emphasized its potential to alleviate the burden on the power generation system. He also outlined measures being taken to improve customer service at distribution companies, curb power theft, and crack down on pilferage, promising zero tolerance against service delivery issues.
In a hint towards future plans, Leghari mentioned the potential privatization of certain departments. He stated that long-term contracts for operational management were being prepared, which would enable privatization after value addition.
