Federal Minister for Energy Awais Ahmad Khan Leghari on Thursday said the government has finalised a revised net metering policy, which will be issued within a month following the federal cabinet’s approval.

Speaking at a workshop in Islamabad, the minister said the policy had been restructured in line with directives from the federal cabinet to facilitate a sustainable shift toward renewable energy and reduce electricity costs.

Mr Leghari noted that while monthly fuel adjustments had risen due to expensive fuel-based electricity generation — prompted by poor water availability in recent months — overall electricity prices in the country had witnessed a downward trend.

He said the government had introduced a number of initiatives aimed at providing relief to consumers, including substantial reforms in the power sector over the past year.

“Electricity prices are continuously coming down. A major shift to solar energy has taken place in both the agricultural and industrial sectors,” the minister said, adding that industrial tariffs had been slashed by 30 per cent in the last year alone.

He further stated that efforts were being made to achieve a long-term reduction in power tariffs through the adoption of alternative energy sources, as opposed to costly imported fuels.

“A revolution in alternative energy has begun in Pakistan. We now have a surplus of 7,000 megawatts due to declining electricity demand over the past two to three years,” he said. The surplus, according to the minister, has enabled the government to move forward with plans to establish a competitive electricity market.

Mr Leghari also revealed that nearly 3,000 MW of generation capacity based on furnace oil had been phased out, in a bid to cut down environmental impacts and reduce dependence on imported fuels.

He said the government was actively working to ensure that inefficiencies, such as transmission losses, do not translate into financial burdens for consumers.

“Power plants based on imported fuel are being transitioned out not just for economic sustainability but also to protect the environment,” the minister added.

The revised net metering policy — a key component in encouraging solar adoption among households and businesses — is expected to define new terms for distributed solar generation and its integration into the national grid. However, details of the policy are yet to be shared publicly.