On Tuesday, officials from the government informed the Senate Standing Committee on Power that they are considering reducing the net metering fee for solar power units installed on rooftops.
Among the several energy-related topics discussed at the conference, which Senator Azam Nazeer Tarar presided over, were probes into allegations of wrongdoing in the bidding process for a power project that would receive funding from abroad.
The circular debt was allegedly capped at Rs. 2.31 trillion, according to government officials at the conference.
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Power Secretary Asad Rehman Gilani announced at the session that, as a result of increased insurance premiums and Middle Eastern tanker fees, recent fuel cost changes have exceeded tariff predictions.
The present net metering rate of Rs. 22 per unit has prompted concerns, and some government officials have even suggested a possible reduction. Secretary Gilani and Caretaker Power Minister Muhammad Ali lobbied for a reduced tariff, stating that larger users could not pay the rates charged to wealthy metropolitan households. Since the present tariff disproportionately affects low-income consumers, they stressed the need for equity.
Debt Management by Government:
Managing the circular debt, which amounted to Rs. 2,310 trillion as of December 21, 2023, effectively met targets established by the IMF, according to the secretary’s brief statement.
Reasons given by him include effective management of the power sector, changes to tariffs to compensate for losses, and a successful anti-theft program that has recovered Rs. 85.7 billion since August 2023.
The committee also reviewed the transmission line contract awards for the Dasu project. Sinohydro Corporation, Harbin Electric International, and GOPA Intec of Germany were all parties to the contracts that were under investigation for transmission line construction.
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