Former Finance Minister Miftah Ismail has responded to Energy Minister Awais Leghari’s claim that net metering causes losses of Rs 150 billion to power distribution companies (DISCOs). In a detailed statement, Ismail expressed confusion over the figures presented by Leghari, challenging the rationale behind reducing net metering incentives while ignoring the larger issue of transmission and distribution (T&D) losses.
“You say DISCOs lose Rs 150 billion due to net metering. However, last year, they purchased only 1,269 GWh from solar consumers, which at Rs 27 per unit amounts to Rs 34.3 billion—not as payments to consumers but as a reduction in their electricity bills,” he stated. Ismail pointed out that this figure represents less than 1% of the total units purchased by DISCOs and only 5% of the 24,020 GWh lost during distribution.
He criticized the government for focusing on reducing payments for green energy rather than addressing distribution losses, which he claimed are 20 times higher than the solar power purchased. “Can you tell us how much in T&D losses the DISCOs incur annually beyond what NEPRA allows? And has there been any improvement?” he asked.
Ismail further argued that the actual cost of purchasing solar power for this year would not exceed Rs 50 billion. “This Rs 50 billion is not a net loss, as DISCOs will receive 1,850 GWh in return, which they can resell,” he said, urging Leghari to re-evaluate the Rs 150 billion loss claim.
He also criticized the government’s decision to stop purchasing solar power at Rs 27 per unit from new consumers while continuing the same rate for older ones. “This means the wealthier households who adopted solar early will benefit, while the middle class, now turning to solar to escape high electricity bills, will be at a disadvantage,” he remarked. Calling for fairness, he suggested that all consumers—old and new—should receive the same Rs 27 per unit rate.
Citing regional disparities, Ismail highlighted that last year, IESCO had over 34,000 solar meter consumers, while Sukkur, Quetta, and FATA’s DISCOs had fewer than 200 combined. He urged the government to ensure equitable policies across all regions.
Raising concerns over electricity pricing, he questioned why the government is buying power from new solar consumers at just Rs 10 per unit while selling electricity at Rs 48.8 per unit (plus taxes). “Is this fair? Why can India, Bangladesh, and Sri Lanka sell power at much lower rates than Pakistan? If we have excess capacity, why is the government not pricing electricity closer to its marginal production cost?” he asked.
Finally, he demanded answers regarding the impact of renegotiated Independent Power Producer (IPP) contracts. “We heard that the government successfully reduced or ended many IPP agreements, which was supposed to save consumers a lot of money. So why haven’t we seen any reduction in our power bills?” he questioned.
Ismail’s remarks come amid growing concerns over rising electricity tariffs and the government’s handling of the energy crisis. His statement underscores the need for a transparent and equitable approach to energy pricing and net metering policies.
