ISLAMABAD: Consumers grappling with the highest-ever electricity tariffs and seeking installment plans for their hefty bills due to financial hardships are now required to pay a 14% markup on delayed payments. Additionally, they will be disqualified from availing subsequent part-payment facilities for a year.
This comes on top of a 10% late payment surcharge (LPS) for bills not paid within the prescribed deadline.
The National Electric Power Regulatory Authority (Nepra) has implemented these changes through an amendment to the Consumer Service Manual (CSM) following requests from the Power Division and its distribution companies (Discos), including K-Electric.
Nepra, however, rejected several proposed punitive measures against consumers, such as heavy urgent fees for priority new connections, restrictions, and penalties on multiple connections at one premises, and increased penalties on detection bills for issues like slow or defective meters, or theft.
According to the notification, no markup or LPS will be applied if the first installment of a current month’s bill is paid within the due date. However, subsequent installments will incur a 14% annual markup on a pro-rata basis, and the installment facility can only be used once per financial year.
Consumers must request extensions for bill payments before the due date. Discos and K-Electric will generate computerized bills allowing installments and due date extensions.
Former Energy Planning Commission member Syed Akhtar Ali criticized Nepra’s decision, arguing that if a markup on installments is allowed, LPS rates should be regulated, as a 10% LPS for a month is excessively high. He suggested that LPS should not exceed 2%, considering the current market-based policy rate of 22%.
A Nepra official stated that the 14% markup had already been charged by Discos independently and was now regularized after a public hearing. He added that the regulator had dismissed Discos’ demands for an ‘urgent fee’ of Rs15,000 for single-phase and Rs30,000 for three-phase meters for early connections.
Currently, new connections are provided within 30 days for domestic or commercial consumers up to 15 kilowatts and up to 8kw for industrial and agricultural consumers, with fees ranging from Rs8,500-11,500 for single-phase meters and Rs36,500 to Rs50,000 for three-phase meters.
Discos had also requested permission to confiscate electric appliances and equipment and impose heavy penalties like ‘detection bills’ equivalent to five years of power consumption for theft, and to remove multiple connections and separate meters in residential premises without direct and separate entrances from main roads.
Story by Khaleeq Kiani
