Federal Energy Minister Awais Leghari announced on Monday that the government is planning to “rationalize net metering,” ensuring that no additional financial burden is placed on other electricity consumers.
According to a statement from the Ministry of Energy, the reforms aim to create a fair and sustainable electricity pricing system that benefits all stakeholders.
During his address, Leghari reaffirmed the government’s commitment to transparent and fair negotiations with Independent Power Producers (IPPs), emphasizing that IPPs have the option to “avoid talks or choose arbitration and forensic audits.” This step is seen as a move to ensure accountability and efficiency within the electricity sector.
Leghari chaired a high-level meeting with international development partners to discuss ongoing reforms in the power sector. The primary focus of the discussions was to provide affordable electricity to consumers, especially industries, while improving the sector’s efficiency and governance. With electricity costs playing a crucial role in the country’s economic stability, the government aims to implement policies that ensure sustainable energy production and distribution.
The meeting, led by World Bank Country Director Mr. Najy Benhassine, was attended by representatives from various development organizations. Participants engaged in discussions on how to enhance the electricity supply chain and make energy tariffs more equitable for businesses and households alike.
Highlighting the importance of rationalizing electricity tariffs, Leghari stressed that making electricity more affordable is essential for economic growth. He outlined key reforms, including the gradual phasing out of furnace oil-based power plants and transitioning from imported coal to locally sourced coal, which would help reduce reliance on expensive foreign energy resources.
The reforms are expected to bring greater stability to the electricity sector, ensuring that industries remain competitive while household consumers benefit from a more balanced tariff structure. Leghari’s emphasis on improving electricity sector governance was well received by the meeting participants, who praised the government’s initiatives and pledged their full support for future reforms.
With the government’s continued focus on making electricity more accessible and cost-effective, the rationalization of net metering will be a key step in ensuring a more sustainable energy landscape for Pakistan.