Govt cuts key relief for power consumers

ISLAMABAD: Power consumers in Pakistan face a new setback as the government has significantly curtailed a crucial relief mechanism for bill payments in instalments. Under the new regulation, consumers can only avail themselves of this option once annually, with subsequent instalments subject to a hefty 14 percent markup.

The National Electric Power Regulatory Authority (Nepra) issued a notification, disseminating it to all power distribution companies (Discos), including K-Electric, and other relevant departments.

This decision follows an amendment to the Consumer Service Manual (CSM) 2021, following the Nepra Act and other applicable regulations. The amendment specifically revises the policies on extending due dates for payments and instalments of electricity bills.

On December 19, 2023, Nepra held a public hearing on this matter, where the new provisions were approved.

Under the amended regulations, no markup or Late Payment Surcharge (LPS) will be charged if the first instalment of the current month’s bill is paid by the original due date. However, any subsequent instalments will incur a 14 percent per annum markup, calculated on a pro-rata basis. This instalment option will be available only once per financial year. Additionally, requests to extend the due date for bill payments are to be made before the due date. Discos would generate computerised bills once instalments and extensions are approved, ensuring transparency and clarity in the billing process.