ISLAMABAD: The government of Pakistan is preparing to impose a significant increase in security deposit rates for electricity consumers, raising them by over 200%.
Eight Power Companies Seek Security Deposit Hike
The decision follows requests from eight electricity distribution companies to the National Electric Power Regulatory Authority (NEPRA), including:
- Peshawar Electric Supply Company (PESCO)
- Multan Electric Power Company (MEPCO)
- Gujranwala Electric Power Company (GEPCO)
- Lahore Electric Supply Company (LESCO)
- Faisalabad Electric Supply Company (FESCO)
- Hyderabad Electric Supply Company (HESCO)
- Quetta Electric Supply Company (QESCO)
- Tribal Areas Electric Supply Company (TESCO)
These companies argue that the current security deposit amounts are insufficient to cover defaults, necessitating an increase that will impact all categories of consumers, including domestic, commercial, industrial, and agricultural users.
NEPRA Hearing on Security Deposit Increase
NEPRA is set to hold a hearing today to deliberate on the matter. If approved, the increased security deposits will further strain electricity consumers, who are already facing rising power costs.
Recent Electricity Price Hikes
Last month, NEPRA announced a 20-paise per unit increase in electricity tariffs, part of the quarterly adjustment for the first quarter of the current fiscal year. This increase is expected to place an additional burden of Rs1.18 billion on consumers.
The tariff hike will be applicable only for December 2024 and will not impact lifeline or prepaid electricity consumers. Additionally, under the winter package, consumers using extra electricity will be exempt from this adjustment.
The proposed security deposit hike, combined with ongoing price increases, adds to growing concerns over electricity affordability in Pakistan.
