Leghari Defends Tariff Restructuring, Cites Solar Energy Growth

ISLAMABAD: Federal Minister for Energy (Power Division) Awais Leghari has said that the number of electricity consumers using less than 200 units per month has surged from 9 million to 21 million, largely due to the rapid adoption of solar energy across the country.

Speaking on Geo News programme Naya Pakistan on Sunday, the minister said that many affluent consumers had moved into the lower consumption category by installing solar systems, adding that it was not feasible for the state to continue providing heavy subsidies to such a large segment.

“It is not the government’s responsibility to give a 70 percent discount on electricity to a vast number of consumers, including those who can afford solar installations,” he said.

Commenting on electricity tariffs, Leghari said Pakistan’s industrial power rates had now come closer to those of other regional countries, rejecting claims that electricity in Bangladesh was available at six to seven US cents per unit.

He said the government was working to restructure the power sector’s debt to reduce electricity tariffs across the board, rather than limiting relief only to industrial consumers. He added that there was no fiscal space for further subsidies and that tariff rationalisation could be achieved by increasing fixed charges while lowering per-unit costs.

The minister’s remarks came days after the federal government announced relief measures for industries, including a reduction of Rs4.04 per unit in electricity tariffs and a cut in the export refinance scheme rate from 7.5 percent to 4.5 percent to support export-led growth.

Separately, the federal government has proposed a reduction of up to Rs1.53 per unit in the base electricity tariff for certain domestic consumers, while recommending higher fixed monthly charges for some protected and unprotected households. The proposals were submitted to the National Electric Power Regulatory Authority (Nepra).

Under the proposal, protected consumers using 51 to 200 units would face fixed charges ranging from Rs200 to Rs300 per month, while unprotected consumers using up to 600 units could see fixed charges increase by up to 100 percent. Conversely, households consuming more than 600 units would see fixed charges reduced to Rs675 per month.

The government has also proposed base tariff reductions for higher-usage unprotected consumers, while tariffs for lifeline and lower-usage consumers would largely remain unchanged.

Nepra is scheduled to hold a public hearing on February 10, 2026, to seek feedback from stakeholders and consumers on the proposed tariff adjustments.

Responding to a query on proposed changes to net metering regulations, Leghari said that solar consumers who fully utilise the electricity they generate would be able to recover their investment within 18 months under the new framework. Those exporting around 40 percent of their generated electricity could recover costs within approximately three and a half years.

He added that under the existing net metering system, with a buyback rate of Rs27 per unit, consumers are currently able to recover their investment in around 18 months, a period that could nearly double under the proposed changes.