- Ismail slams the tax on net solar consumers.
- Leghari says that changes in commissioning do not benefit from future users.
- Govt claims that IPP offers have renegotiated to save RS1.5Tr.
An animated exchange broke out Thursday between the former Minister of Finance Miftah Ismail and the Federal Minister of Power Sardar Awais Leghari on the proposed reduction of the government of the solar implementation rate, The news reported.
Ismail accused the government of turning back on its commitment to solar users on the roof, while Leghari has rejected complaints, claiming that regulatory changes would make solar energy more affordable and extend its contribution to the national network.
Speaking at a press conference in Karachi, Ismail accused the government of a policy reversal and taking a U-turn in terms of installing solar house systems by reducing net implementation rates.
He criticized the government’s move to impose an RS8 sales tax on each unit purchased from consumers who installed solar systems on the roof on the network within the framework of the net implementation system.
The former finance minister said that the government would again impose the sales tax when it sells electricity to consumers. He recalled that before, Prime Minister Shehbaz Sharif had encouraged consumers to install solar systems under the net implementation regime.
The government had introduced the gross directing regime after abolishing the net implementation system, he added.
He deplored that it has become heavy for the government to buy 1,300 gigawatt hours of electricity from consumers who have produced solar energy within the framework of the net implementation system.
On the other hand, he underlined, the purchase of electricity from independent electricity producers (PPI) at a higher rate of RS70 per unit does not seem to create financial burden for the government.
Ismail said that electricity consumers who have installed solar systems on the roof as part of the staging regime would now suffer due to power plants built by the government producing expensive electricity.
He said Pakistan failed to attract foreign investments due to the high cost of electricity for industries. The government has done nothing to reduce the financial and technical losses suffered by electricity distribution companies in the country, he added.
The former minister also said that the government should be held responsible for the costly power plants in the country. Sindh and Punjab leaders should also be held responsible for their announcements during electoral campaigns that up to 300 electricity units are provided for consumers, he added.
Meanwhile, Leghari rejected Ismail criticisms, accusing him of misleading the public with incorrect and baseless personalities. Leghari defended government energy policies, in particular the promotion of renewable energies and reforms in the electricity sector, calling them from vital stages to economic stability.
He said the government has prioritized clean and affordable energy, encouraging residents to install solar panels. He pointed out that changes in net staging regulations have led to a drop in solar energy prices, adding more than 4,000 MW of solar electricity to the national network.
The federal minister has planned that over the next eight years, the solar capacity of commissioning would exceed 12,000 MW. “Future consumers of net creation will recover their investment in three to four years, which is an excellent return,” he said, making current users of net commissioning continue to benefit from previously agreed rates.
Leghari stressed that prices worldwide are adjusted to avoid unnecessary pressure on national networks and economies. He also revealed that the government has renegotiated the agreements with PPI by mutual consensus, saving more than 1.5 Billion of rupees, which, he said, would soon be transmitted to consumers via lower electricity prices.
He also underlined Pakistan’s progress in clean energy, saying that more than 55% of the national network supply last year came from clean sources, including Hydel, Solar, Wind and Nuclear Power. He has planned that clean and green energy would reach 85% of the mixture in the coming years.
Defending the management by the government of sugar and wheat supplies, he rejected Ismail criticism as politically motivated. “It is regrettable that a former Minister of Finance is politicizing economic issues without presenting facts,” said Leghari, adding that government’s opportune decisions have provided stable supplies of essential products.
“The government is doing everything possible to improve the energy, agricultural and economic sectors. The extent of the reforms in the power sector is unprecedented, and ignoring these achievements is deeply regrettable. ”