Govt moves to end free electricity for power sector employees

ISLAMABAD: The government is taking steps to end the provision of free electricity to employees in the Power Division, including those in distribution and electricity generation companies, Federal Energy Minister Owais Leghari said on Wednesday.

Currently, each employee gets free electricity worth an average of Rs6,000 per month, which adds a significant financial burden to the sector.

Leghari said the government has engaged the Attorney General’s Office to expedite pending legal cases that are preventing the discontinuation of free electricity. “We have spoken to the Attorney General’s Office to resolve these cases quickly so that we can put an end to free electricity,” he told reporters. The minister proposed salary increases as compensation for the loss of free electricity benefits. He also outlined a plan to offer lower electricity rates to consumers with low power consumption.

“We are working on a mechanism to provide cheaper electricity to those who use less,” he said.

He warned that the expansion of solar energy through net metering is putting financial pressure on ordinary consumers. Power companies are purchasing electricity at higher rates from net-metering users and passing on the costs to general consumers. “Currently, general consumers are bearing an additional burden of Rs103 billion due to this system,” Leghari said.

The minister also pointed out that capacity payments are being made to net metering consumers, stressing that each region should have its tariff structure to ensure fair pricing based on local conditions. He said the government aims to help net metering investors recover their investments within four years. However, Leghari clarified that the government is not discouraging solar energy. He emphasised that a solar revolution has already taken place in Pakistan.

The minister said that the total investment in solar energy could be recovered within just 18 months.