Electricity Bills Could Rise Higher Security Deposits Proposed

Electricity consumers might face higher security deposit requirements, with amounts potentially rising as high as Rs56,111, as eight state-owned power distribution companies (Discos) have requested approval from the National Electric Power Regulatory Authority (NEPRA) to adjust the rates.

As per media reports, the distribution companies—including Peshawar Electric Supply Company (PESCO), Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Hyderabad Electric Supply Company (HESCO), Quetta Electric Supply Company (QESCO), and Tribal Areas Electric Supply Company (TESCO)—have each filed individual petitions with NEPRA.

These petitions request a revision in security deposit rates to address ongoing economic challenges and maintain the financial viability of these power companies. The distribution firms argue that the current deposit system is insufficient to protect them from financial risks, especially with the rising costs of electricity and operational expenditures.

NEPRA has scheduled a public hearing for February 11, 2025, where stakeholders, consumers, and the public can provide feedback either in person or virtually.

In their petitions, the Discos propose adjusting the security deposit amounts to reflect two months' worth of revenue, including taxes, for each tariff category. For urban domestic consumers, the new deposit structure would be based on the property size and electricity consumption.

For properties of up to 10 marlas, the deposit would be based on the average electricity consumption over three months. For larger properties, the deposit would be set at 1% of the property’s market value, as determined by the Federal Board of Revenue (FBR) rates.

If these proposed changes are approved, they would directly impact electricity users, particularly those with higher consumption rates, as the power distribution companies aim to mitigate financial risks associated with non-payment and the rising costs of energy