Pakistan’s Power Distributors Seek Up to 15-Fold Surge in Security Fees

Pakistan’s electricity distribution companies have submitted a proposal to raise security fees for consumers in the Nepra region, aiming to hike the fees from Rs 1220 to Rs 18,000 for household users.

According to sources, consumers with electricity loads of less than 10 kilowatts would need to pay up to Rs 20,000 per kilowatt, while a security deposit of up to Rs 24,000 would be required for a single-phase meter connection.

Rural areas could see security fees rise from Rs 610 to Rs 7,800 per kilowatt, with landowners of plots larger than 10 marlas being charged an additional one percent of the property rate.

This proposal also encompasses industrial, street lighting, and housing society consumers, with fees for commercial and small industries potentially skyrocketing from Rs 20,000 to Rs 57,000 per kilowatt.

Previously, in July 2023, there was already an increase in connection fees. The decision to increase security fees has been taken by the Power Division Ministry, but final adjustments will be made after hearings in NEPRA.