4,742 net metering applications pending in Pakistan due to distribution companies’ reluctance

Pakistan’s electricity distribution companies (DISCOs) perceive distributed generation and net metering as competition rather than a complementary energy solution due to which 4,742 applications — amounting to a total capacity of 58.8 megawatts (MW) — remained pending with them.

This perception has led to delays in approval and installation, Pakistan’s power regulator noted.

An analyst highlighted that distributors' delaying tactics are depriving consumers of their hard-earned money, forcing them to continue paying exorbitant electricity bills.

Net metering systems have the potential to reduce a typical household's electricity bills by approximately 70%.

In fiscal year 2023-24, the National Electric Power Regulatory Authority (NEPRA) issued 3,736 net-metering concurrences, with a cumulative installed capacity of 591.092 MW. Meanwhile, 4,742 applications with a total capacity of 58.8MW are still awaiting approval.

NEPRA grants concurrences for net-metering systems with an installed capacity exceeding 25 kW. According to the NEPRA Annual Report 2024, no concurrence from NEPRA is required for systems with a capacity of 25 kW or less, as such installations are managed directly by the distribution companies.

The authority noted numerous complaints have been filed with NEPRA and other forums regarding prolonged processing times, despite applicants meeting all necessary requirements.

These delays undermine the potential benefits of renewable energy and grid efficiency.

'Illegal payments'

Additionally, reports of DISCOs staff soliciting illegal payments to expedite applications exacerbate the problem. This creates financial burdens for consumers and highlights systemic inefficiencies and corruption.

These practices erode public trust and violate principles of transparency and accountability, ultimately hindering the development of a sustainable, efficient energy system.

Among the DISCOs, the Islamabad Electric Supply Company (IESCO) leads with the highest number of pending applications at 1,363, totaling a generation capacity of 12.3MW. The Faisalabad Electric Supply Company (FESCO) follows closely with 871 pending applications, contributing 12.4MW. Karachi Electric (KE) reports 773 pending applications with a generation capacity of 10.2MW.

Other DISCOs also have significant pending applications, including the Lahore Electric Supply Company (LESCO) with 699 applications (6.1MW) and the Multan Electric Power Company (MEPCO) with 548 applications (5.4MW). Interestingly, the Tribal Electric Supply Company (TESCO) has only one pending application, contributing 240KW.