ISLAMABAD  -  The National Electric Power Regulatory Authority (NEPRA) will issue a show-cause notice to K-Electric (KE) for rejecting a huge number of Net Metering applications. Taking serious notice of KE’s non-compliance with its directives regarding the rejection of these applications, NEPRA has decided to issue the notice, according to an order issued by the authority in response to K-Electric’s reply to the explanation on the matter.

Taking into account the submissions of the KE in light of the NEPRA Act, NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 (Net-Metering Regulations, 2015), NEPRA (Fine) Regulations, 2021 and other applicable documents, the authority is of the opinion that the licensee has failed to comply with the directions of the authority and applicable documents, said the order. Hence, the same constitutes a clear violation of NEPRA Act, NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015 (Net-Metering Regulations, 2015), NEPRA (Fine) Regulations, 2021 and other applicable documents of which implementation is binding upon the licensee under the law, being an applicable document. It is, therefore, concluded that the licensee has failed to submit a satisfactory reply to the explanation issued to it, hence, the authority hereby decides to issue a show-cause notice to the licensee in terms of Regulation 4 (8) & (9) of the NEPRA (Fine) Regulations, 2021, the order further said.

According to the regulator, K-Electric was directed to provide information within seven days on the pretext that a large number of net-metering applications were rejected by the company on the basis of overloading of common distribution system PMTs; however, KE provided no information whatsoever, without any justification. The licensee did not comply with the above directions of the authority and failed to provide the requisite information despite lapse of given time period and issuance of a reminder. KE after lapse of more than a month requested for extension in submission of information. If any extension was required, KE should have requested within the given time period of seven days.

The authority took serious notice of non-compliance with the directions of the authority by the licensee for the provision of information pertaining to non-provision of net metering connection to a large number of consumers on the basis of overloading of Common Distribution System / PMTs and issued an explanation letter dated July 12, 2024 to the licensee under Rule 4 (1) and 4(2) of NEPRA (Fines) Rules 2002 to be read with NEPRA (Fine) Regulations, 2021. In response, KE submitted its reply saying that compilation of information was longer than expected and, hence, more time was required for submission of authenticated information after its revalidation through site surveys; therefore, extension request was submitted to NEPRA for submission of response, pursuant to which the requisite information has been submitted. KE always ensures submission of accurate and up-to-date information to NEPRA and utmost compliance of applicable laws and did not act in any manner whatsoever which violates any of the provisions of the NEPRA Act or the applicable documents, reply further said.

Meanwhile, KE submitted the information which was not in accordance with the directions issued by this office. KE was once again directed to submit complete / comprehensive information i.e. details of rejected net metering cases alongwith maximum load on PMTs, at the earliest. In response, KE after lapse of a month submitted that net metering cases in which PV injection reaches 80 percent of the installed Distribution Transformer (DT) capacity require augmentation of DT cost of which is to be borne by the consumers as per Clause 3.A7 of PPIB (AEDB) guidelines as reproduced below: “In case if the load capacity due to already installed DG facilities at any transformer reaches 80 percent, the DISCO shall not grant approval for any new DG facility at that transformer unless the new DG Facility operator agrees and pay for the cost of augmenting the transformer capacity.” KE further apprised that such cases are not rejected by KE and they are pending at the consumer end as their consent is awaited for further processing and this ensures that the burden of augmentation is not passed onto other consumers of common distribution system who are not the beneficiary of Net Metering facility. The regulator has termed the reply of the KE to the explanation unsatisfactory and decided to issue a show cause notice to the licensee.