ISLAMABAD: The government is set to end free electricity perks for employees in the Power Division, including those in distribution and generation companies, as part of broader reforms to ease financial strain on the energy sector, Federal Energy Minister Owais Leghari announced on Wednesday.
Currently, power sector employees receive free electricity worth an average of Rs6,000 per month, adding a significant burden to the sector’s finances. To expedite the process, the government has engaged the Attorney General’s Office to resolve pending legal cases preventing the policy change.
“We have taken up the matter with the Attorney General’s Office to accelerate legal proceedings so that we can officially end the provision of free electricity,” Leghari stated. As compensation, the government is considering salary adjustments for affected employees.
Revised Electricity Tariffs and Net Metering Concerns
The minister also revealed plans to introduce lower electricity rates for consumers with low power usage, ensuring affordability for vulnerable segments of society.
However, he raised concerns over the financial impact of net metering, stating that power companies are purchasing electricity at high rates from solar users while passing the costs onto general consumers. “At present, ordinary consumers are bearing an additional burden of Rs103 billion due to this system,” he noted.
Leghari proposed a regional tariff structure to align pricing with local conditions and ensure fair distribution of costs. He reassured solar investors that the government supports solar expansion, with net metering investments expected to break even within four years.
While dismissing claims that the government is discouraging solar power, he highlighted that Pakistan has already undergone a solar revolution, with total solar investments recoverable within just 18 months.
These reforms are part of the government’s broader energy sector overhaul, aimed at enhancing efficiency, reducing costs, and ensuring affordable electricity for the public.
