Pakistan Set to Increase Electricity Security Deposit by Over 200%

The government is planning to impose a significant increase in electricity security deposits, with rates expected to rise by over 200%, sources confirmed on Monday. This proposal, submitted to the National Electric Power Regulatory Authority (NEPRA) by eight electricity distribution companies, is set to affect consumers nationwide.

NEPRA is scheduled to hold a hearing today to review the request and determine whether to approve the proposed increase.

Major Electricity Companies Seek Higher Deposits

According to reports, eight major power distribution companies have requested this increase, arguing that the current security deposits are insufficient to prevent consumer defaults on electricity bills. The companies seeking the revision include:

• 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)
• Tribal Areas Electric Supply Company (TESCO)

The increase will apply to all consumer categories, including domestic, commercial, industrial, and agricultural users.

Consumer Impact and Rising Costs

If approved, this decision will significantly increase the financial burden on consumers, who are already struggling with high electricity prices.

The proposed hike comes just weeks after NEPRA approved a 20-paisa per unit increase in electricity prices as part of the quarterly adjustment for the first quarter of the fiscal year. This adjustment has already resulted in an additional burden of Rs 1.18 billion on consumers.

Industry analysts warn that a higher security deposit will make electricity connections more expensive for households and businesses, potentially slowing down industrial activity and economic growth.

NEPRA’s Decision Expected Soon

NEPRA will review the proposal during its hearing and decide whether to approve the security deposit increase. If approved, the revised deposits will be implemented immediately, adding to the rising costs of electricity for all consumer categories.

Energy experts have raised concerns that this move may exacerbate financial difficulties for consumers, while power companies defend the proposal as a necessary step to reduce defaults and improve revenue collection.

What’s Next?

• NEPRA’s final decision is expected in the coming days.
• If approved, the new security deposit rates will take effect immediately.
• Businesses and consumers will have to adjust to higher upfront electricity costs.

The proposed 200% increase in security deposits has sparked concerns over the rising cost of electricity in Pakistan, with many calling for government intervention to provide relief to consumers.

Further developments will be reported following NEPRA’s decision on the proposal.