Power Division Pauses Net Metering Tariff Reform Amid Public Backlash

The Power Division has temporarily paused its plan to adjust the net metering tariff, following strong public opposition due to the recent increase in electricity prices.

Originally, Prime Minister Shehbaz Sharif had instructed the Power Division to finalize the plan by May 31, 2024. This deadline was extended twice, with the new target now set for September 30, 2024, according to a local report.

Insiders revealed that the Power Division informed the Prime Minister’s Office that implementing further changes would be challenging due to the public’s reaction to the recent tariff hike. Despite this, the division assured that the reform would be introduced at a more suitable time and confirmed that internal discussions had been completed, with a proposal ready for implementation.

Additionally, the restructuring of the National Transmission and Despatch Company (NTDC) is underway. Minister for Economic Affairs Ahad Khan Cheema chaired a meeting on August 1, 2024, to assess progress and outline the next steps for NTDC’s restructuring.

A committee has extended the deadline for submitting restructuring proposals to October 15, 2024.

The Power Division is also collaborating with the Sindh government to expand the Thar coal mining project. Discussions with China are ongoing to transition the Sahiwal, Port Qasim, and Hub coal power plants to Thar coal by July 1, 2029.

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