Pakistan's power sector blames solar users for rising costs

In Pakistan, the power authorities are criticizing users of net-metering services, labeling them as a "burden." These users have installed solar panels to generate their own electricity. The authorities claim that the rise of solar energy users is leading to higher bills for other consumers. Many believe this hostility showcases deeper issues within Pakistan's bureaucracy. Instead of adapting to changes in energy production and consumption, officials seem focused on protecting their own interests. For decades, they have resisted reforms and modernization, particularly in the power sector. Currently, the power sector faces a circular debt of Rs2.3 trillion. Officials have been unable to manage this debt and have stalled efforts to improve the system. They blame net-metering users for contributing to a supposed Rs150 billion loss, which has recently been challenged as being misrepresented. The circular debt affects all consumers, as it is added to their bills. Recently, consumers have been warned of an additional surcharge of Rs2.80 per unit to help manage this debt. Critics argue that the real burden lies with the bureaucrats who fail to manage the power system effectively. In contrast, countries like India face similar issues but manage to handle them more efficiently. Despite having a much larger electricity market, India’s per-unit accumulated debt is lower than Pakistan’s. Electricity sales in Pakistan have declined over the past two years, leading to increases in base tariffs. The government continues to struggle with the rising costs of power, despite passing these onto consumers. The growth in net-metering is part of a global trend towards renewable energy, which the authorities are failing to embrace. Instead of attacking net-metering users, a better approach would have been to make necessary adjustments to the system. Unfortunately, there seems to be a lack of competence among the bureaucrats to navigate these changes effectively.