Govt Plan to Drive People Away from Solar Panels? Why Has the Govt Solar Policy Not Been Clarified?

ARY NEWS

Transcript

00:00The government's new solar policy, again,

00:04before coming to power, the electors used to make claims.

00:07At that time, they used to encourage that electricity will be cheaper,

00:10solar panels will be given priority, schemes will be announced.

00:15But now we have seen that the new reforms have come,

00:18it is like this that a common person who has installed a solar panel,

00:21he will be punished for that,

00:23that how did he think that he will install a solar panel

00:26and think about making his life easier.

00:29In the meeting of the Economic Relations Committee of the State Treasury,

00:32the existing net metering regulations,

00:35many reforms have been approved,

00:37and under the reforms, the buyback rate of electricity has been reviewed.

00:41The 10 rupees fee unit that was decided,

00:44instead of 27 rupees for electricity from the new solar panels,

00:4710 rupees fee unit will be purchased.

00:49Whereas this customer, on using Wabda's electricity,

00:52the government will charge 42 rupees fee unit and 48 rupees fee unit.

00:58Tax is 18% and duties will be included in the bill,

01:02which is a rough estimate, this rate will be around 65 rupees.

01:05According to the announcement, its purpose is to reduce the financial burden on the grid.

01:10This decision was made due to the increasing number of net metering customers.

01:14Due to solar power, for those who use grid power,

01:17the efforts to reduce electricity were harmed.

01:1980% of the customers who use solar panels belong to 9 big cities.

01:24According to the briefing given to the ECC,

01:26till December 2024, Solar Sarfine has transferred 159 billion rupees on grid Sarfine.

01:31And now this burden will increase to 4,240 billion rupees by 2034.

01:36And because the number has increased a lot,

01:38if you look at the total number of Solar Sarfine, it has become 2,83,000.

01:42Now it has been made clear in this announcement,

01:45that the Nazdar Sani Shuddha Framework will not be applied on the existing Net Metering Sarfine.

01:49The existing Sarfine will be shifted under this framework,

01:52after the termination of its 7-year agreement.

01:55Mr. Shahbaz, if we talk about the Punjab government,

01:59they say that you should convert towards solar energy,

02:03solar parks should be built, incentives will be given.

02:05The way the government has practically discouraged people to go towards solar energy,

02:12I give electricity rates on the grid.

02:15I mean, my electricity bill is very high because I don't have a solar panel.

02:19So the burden that is increasing on us,

02:21the government wants to reduce the burden on the grid by taking it out of the pockets of those who have solar panels.

02:28This is the most confusing policy.

02:31What is their policy power policy?

02:33If you understand, because you are a little smart, explain it to me too.

02:36Look, Miss Mani, I am not smart at all.

02:40The government calls me negative, you can call me smart.

02:43You and I keep criticizing the government for no reason.

02:49Our government is so aware of people,

02:52because people were facing an additional burden of 90 paise per unit due to solar panels.

02:59So, feeling the pain of the people, they have reduced the burden of 90 paise.

03:05Yes, it is another thing that the cross-subsidy government is still taking a fee of 18 rupees per unit,

03:09and a fee of 16 to 17 rupees per unit,

03:12on top of which they have removed the burden of 90 paise.

03:17Secondly, there is an intellectual honesty in this.

03:23Now, the number you read in the press release, the burden of 4200 rupees will increase due to solar panels.

03:29They are giving cumulative numbers.

03:31Every year, the burden of 150 to 200 rupees will increase.

03:34According to them, by 2035, the total burden in 10 years will be 4200 rupees.

03:39Even now, they have forgotten that today we are making annual payments in idle capacity payments.

03:45The total burden in 10 years will increase from 2100 to 2200 rupees.

03:50They have not mentioned how much it will increase from 10 to 1000 rupees.

03:53The bottom line is that the inconsistencies in the policies are not good for the economy and welfare of the people.

04:02You should definitely change the policies, but make it realistic.

04:05Don't do it in such a way that you are forcing them.

04:08You reduce their benefit.

04:09If you think that they are being given a fee of 27 rupees per unit, then you reduce it to 10 rupees.

04:14But don't force them to buy their electricity for 10 rupees.

04:19Instead of that, you will sell electricity at a fee of 500 rupees.

04:22Number one.

04:23Number two.

04:24No matter how hard the government tries, it cannot stop solarization.

04:27What they have forced people to do is that people will go towards battery storage.

04:32They will try to get out of the toxic grid.

04:34The process will definitely slow down, but it will not end.

04:38The inefficiencies in the system, especially the theft that is being collected from the electricity bills,

04:44the circular debt that is being collected from the electricity bills,

04:47a fee of 23 rupees per unit is already being taken from us.

04:53In the same way, the line losses and under-recovery are being collected from our bills.

04:58So, neither are they able to end the circular debt, nor are they able to end this theft.

05:02They are saying that we have done it.

05:04Neither have they been able to improve the under-recovery.

05:06The temporary improvement has been made because some of the past recoveries have come.

05:09So, these three things will not be addressed until then.

05:11This rate of 65 rupees today can be something else tomorrow.

05:14So, the government should correct the policies.

05:16Incentivize people to come towards the toxic grid.

05:19Don't punish people so that they come towards the toxic grid as a punishment.

05:23Mr. Gupta, what I understand in a very simple language is that the government first identifies

05:29which department has some inefficiency.

05:33And those who have some inefficiency should be snatched away from them.

05:36Whether it is the salary person, because he pays taxes.

05:38He is also making some money.

05:40Take more taxes from him.

05:41Those who have solar panels,

05:43they have found a way to reduce the electricity costs for themselves,

05:47to control the budget.

05:49They should get it from them.

05:50The decisions of strict structural reforms should not be made.

05:53Target and extract more from where people have cushions.

05:57This is what I understand.

06:00Look, Maria, first of all,

06:02what they say that there is a burden of 156 billion rupees.

06:06This is a lie.

06:07I am not saying anything wrong.

06:09I am saying that this is a lie.

06:10They should not say this.

06:11Last year, the total solar power they bought was of 34 billion.

06:17This year, they will probably buy solar power of 50-52 billion rupees.

06:22So, they are saying that this is a burden.

06:24How is it a burden?

06:25I will tell you how they are saying it.

06:27They are saying that those who have installed solar panels,

06:30if they had not installed solar panels,

06:32and if they had taken more electricity from us,

06:34our sales would have been this much.

06:36The ARY people are saying that

06:38if there were no more channels,

06:40we would have got more ads.

06:42So, the second channel is a burden on us.

06:44The second channel is not a burden on us.

06:46The second channel is a competition.

06:48The second thing is that you get electricity done in the government

06:52because we do not install generators in our homes.

06:55If we install electricity in our homes, it will be very expensive.

06:57So, if you install a big electricity system,

06:59it will be cheaper.

07:00Scale economies will come.

07:02But if your economy is so bad,

07:04your efficiency is so bad that

07:06when I install four solar panels at home,

07:08I get that electricity cheaply.

07:10So, what is the use of the grid?

07:12The third thing is that

07:14this is not a burden of 90 paise.

07:19The cost is increasing.

07:21And if you want to save cost,

07:23if they had given Rs. 34 billion last year,

07:29that is, they have bought 1.2 billion units from the solar companies,

07:37then they have lost 200 billion units in line losses.

07:46They have made 20 times more line losses than this.

07:49So, if you have 90 paise,

07:51if you are worried about your burden,

07:53then reduce the line losses.

07:55You cannot do that.

07:56And the real reason is that

07:58you are selling electricity to middle-class people for Rs. 50 or Rs. 60.

08:01And when you are selling electricity for Rs. 60,

08:03he got worried and went to solar.

08:06With the policy you told,

08:08now you are deviating from the policy.

08:10Now you are saying that I will give Rs. 10.

08:12You will not even give Rs. 10, you will give Rs. 8.5.

08:14You have done gross metering.

08:16And you have brought Rs. 22 to Rs. 27.

08:19But if you are doing this,

08:21the reason is not that electricity becomes expensive.

08:24The reason is that you have put a cross-subsidy in it.

08:27And you want to give subsidies to poor people,

08:29and you must give, but you are not giving from the budget,

08:31you are distorting the price.

08:33So, the government, Mr. Shivraj says,

08:35we have made electricity cheaper for you,

08:37when we go and tell the poor people,

08:39you do not even say this,

08:41what you should say,

08:43that we have made electricity expensive for all middle-class people.

08:45You say that too, because we do not give that money from the government.

08:47This is a very, very flawed policy.

08:49See, when mobile phones came,

08:51at that time, if we had stopped mobile phones,

08:53or when computers came,

08:55at that time, if we had stopped computers,

08:57what would have happened to typewriters,

08:59what would have happened to the typewriter industry?

09:01So, this was a matter of stupidity.

09:03When mobile phones came,

09:05the fixed line telephony in Pakistan was over.

09:07The monopoly of PTCL was over.

09:09In the next 4-5 years, after solar power and batteries,

09:11it will happen that the grid will basically remain as an exchange.

09:13If I have a little more electricity,

09:15give it to Maria's house.

09:17If Maria has more,

09:19give it to Shahzaib's house,

09:21give it to Shahbaz's house.

09:23It will keep rotating like this.

09:25It should not be stopped.

09:27It should be solarized.

09:29The consumer cannot be penalized for their mistakes.

09:31Yes, the middle class is paying the price for it.

09:33You are saying that it is a flawed policy.

09:35I think, Mr. Khan, it is an ad hoc policy.

09:37It is a lack of policy.

09:39A policy is made for a small span of time.

09:41First, you encouraged people

09:43to install electricity on solar power.

09:45Now, we know that

09:47there is a lot of burden on the grid.

09:49We should discourage it.

09:51In 10 years,

09:53let's see the energy policy of the PMLN government.

09:55First, there are IPPs,

09:57then solar,

09:59then they have to compensate for IPPs.

10:01Actually,

10:03what is the long-term policy of the government?

10:05To solve power issues.

10:07So, Maria,

10:09what has come out is the following.

10:11If you go to the heart of the problem,

10:13whether it is the policy of 1994,

10:152002,

10:17or 2015,

10:19there are conditions in which rates have been guaranteed.

10:21There are tariff structures.

10:23If you want to fix all these,

10:25where does the problem lie?

10:27It lies in the fact that

10:29till date,

10:31you need a professional, synergistic

10:33energy ministry.

10:35You need synergy, whether it is solar,

10:37water, power, petroleum,

10:39gas.

10:41If you want to correct this,

10:43in the long term,

10:45you will have to go one way.

10:47We have not been able to go that way till date.

10:49Secondly,

10:51there is a nascent regulator in this country,

10:53which means that

10:55to make these two,

10:57the state-of-the-art regulator,

10:59people will have to bring it from somewhere.

11:01Don't make it a parking spot.

11:03This is too important.

11:05Market making,

11:07they will have to do all these things.

11:09Similarly, the organizational issues of NTDC,

11:11because of which you are not able to

11:13carry electricity,

11:15and in the end, of course, privatization.

11:17This is a pit that the regulator

11:19puts in front of you.

11:21There are a lot of details on this.

11:23See, this 27 rupee policy had to be tweaked.

11:25I am clear on this.

11:27Because, the price of the solar

11:29which was very expensive earlier,

11:31its price had become very low,

11:33and the payback of 4 years had come to 1.5-2 years.

11:3510 rupees had to be tweaked.

11:37We can talk about this.

11:39We went on gross metering.

11:41Maybe we shouldn't have gone on this.

11:43There is room that we would have stayed on net metering.

11:45So, you can say this.

11:47But, these are all the issues.

11:49Now, let me say one last thing.

11:51Who has stopped you?

11:53That you go to the cost of service

11:55and don't tell every disco

11:57that whatever line losses you will do,

11:59whatever inefficiencies you will do,

12:01your price will be that,

12:03the cost of service will be less.

12:05Or, why have you kept the tariff of the whole country separately?

12:07You should create competitive behavior

12:09within the market.

12:11So, there is a lot that can be done.

12:13And, I really hope that the authorities

12:15will consider to do all this.

12:17Before the middle class evaporates

12:19under the burden of your taxes and prices,

12:21you should do it earlier.

12:23Thank you very much.

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