Acknowledging the burden of high fuel cost adjustments on consumers, the government signalled intentions to revisit net metering tariffs for rooftop solar installations following previous unsuccessful efforts. This emerged as a key discussion point during a Senate Standing Committee on Power session, which also concluded investigations into alleged irregularities in awarding contracts for a 765-kilovolt transmission line project, exonerating the involved company.
Power Secretary Asad Rehman Gilani, addressing the committee led by Senator Azam Nazeer Tarar, attributed recent surges in fuel adjustments to factors beyond control, such as elevated insurance and tanker fees due to Middle Eastern tensions. He mentioned constraints tied to IMF agreements; forecasting potential decreases in fuel adjustment charges with reduced heating demands in Europe.
In a parallel development, power sector regulators reported distribution companies’ requests for significantly higher January fuel cost adjustments, almost double the reference costs.
Gilani and interim Power Minister Muhammad Ali advocated reducing tariffs for rooftop solar power owners, branding them affluent urban residents. They contrasted these homeowners with less wealthy individuals, suggesting a future tariff adjustment to foster fairness. This stance was in response to concerns about the impact on citizens who had embraced solar power, encouraged by prior government incentives.
The Senate committee also opted to close the file on the Dasu Hydropower Project’s transmission line contract allegations, influenced by leadership changes within the panel. Senator Saifullah Abro’s replacement by Senator Azam Nazeer Tarar shifted the committee’s focus, emphasizing reliance on judicial and governmental reviews over extending legislative support to contractor disputes. This decision related to contracts awarded for constructing a transmission line integral to the Dasu project, involving international and local firms.
