The government has proposed a significant cut in the rate at which electricity is purchased from net metering users, from Rs27 per unit to Rs10 per unit, a reduction of Rs17 per unit.¹ This proposal was shared during ongoing talks with an International Monetary Fund (IMF) mission.
The net metering system allows consumers who generate their own electricity, typically through solar panels, to sell excess power back to the grid. This not only reduces their electricity bills but also encourages the use of renewable energy sources.
However, the IMF has raised concerns about how the government plans to address the issue of off-grid consumers leaving the main grid. The government has yet to provide a clear response or plan on this matter.
Additionally, the IMF has suggested that the government use available financial space to reduce circular debt, which is a major issue in the power sector.
