Islamabad-(Mudassar Iqbal)-A recent report has sounded the alarm on the potential for a significant increase in Pakistan’s fiscal burden. The warning comes as a result of the absence of immediate regulatory and policy action, particularly in regards to the country’s solarization policies.
In a worrying revelation, it has come to light that unregulated solarisation in the country has led to non-solar consumers bearing additional burden which exceeded Rs200 billion in fiscal year 2023-24, The News reported on Saturday.
A report titled “The Distributed Divide – How Solar Expansion Affects Non-Adopting Consumers and Utility Economics,” discloses that there was a Rs2 per kilowatt hour tariff increase in FY2023-24 and warns of the fiscal burden to further intensify in the absence of immediate regulatory and policy action.
Rs200 Billion Burden on Non-Solar Consumers
At the heart of the issue lies the financial burden placed on non-solar consumers. The report reveals that these individuals are shouldering a substantial Rs200 billion in costs, stemming from the unregulated solarization and net-metering incentives.
Call for Urgent Action
The report emphasizes the need for swift regulatory and policy action to mitigate this impending fiscal crisis. It stresses that inaction will only serve to exacerbate the problem, resulting in severe consequences for the country’s economy.
Recommendations for Reform
To address the issue, the report proposes a series of reforms aimed at promoting a more equitable and sustainable energy policy. These recommendations include revising the net-metering policy, implementing measures to reduce the financial burden on non-solar consumers, and increasing transparency in the regulatory framework.
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