LESCO Latest News and Updates
Here you will get the latest news and updates regarding the LESCO Bill. This post will cover updates in price, tariff and all related fields.
If you want to check your Duplicate LESCO Bill, then visit LESCO Bill to check and download your bill.
IMF Rejects Tax Reduction on Electricity
Govt is planning to reduce electricity prices in the next 1-2 months. They are planning to reduce costs and some taxes. However, the IMF rejects the proposal of a reduction in taxes on electricity. They said the reduction in taxes will affect the tax collection and Govt will not be able to fulfil the tax collection target.
Free Solar Panels
Punjab Govt is going to distribute free solar panels to consumers. The CM Punjab announced to give solar panels to 100000 domestic consumers. They can apply or register online for this scheme. The Govt announced giving 500-watt and 1000-watt systems to consumers. It is a permanent relief to electricity consumers as they will get free electricity.
Huge Number Of Net Metering Applications
Due to increasing prices of Electricity in the country, consumers are moving to Solar Energy. They not only try to cover their demand for electricity with Solar Panels but also try to export it to the National Grid. For exporting electricity they require ” Green Meter ” or ” Net Metering “.
A lot of net metering applications are pending in DISCOS, their capacity surpasses the total production of the national grid. NEPRA has revealed this in its recent report. The total capacity of pending applications is 58822 Mega Watt.
NEPRA Reveals Original Cost Of Electricity
In its recent report, NEPRA reveals the original cost of electricity, which is the cost at which electricity is produced. You will be shocked to know the original electricity production cost of Rs 7.62 per unit. Govt sells this electricity at Rs 45 per unit to consumers. NEPRA said this huge increase in the sale price is due to 7 types of taxes and surcharges which Govt levies.
Various taxes are applied to electricity amounting to Rs 15.28 per unit while Rs 0.67 per unit is added as a ” New Year Surcharge “. The distribution companies ( DISCOs ) margin is Rs 3.10 per unit. The transmission charges are Rs 1.37 and Rs 0.01 per unit. Capacity payment charges are very high which are Rs 17.01 per unit.
The actual electricity price is Rs 7.62 per unit while consumers are charged Rs 45 per unit. This is the main reason for increased electricity bills. The consumers are paying high electricity charges due to these taxes. If govt is willing to give relief to electricity consumers then they should abolish these taxes to lower the prices significantly.
Govt Plans to Cut Electricity Prices
Govt is working hard on different plans to cut the electricity tariff from March 2025. Govt is doing dialogue with IPPs to lower their tariff and abandon the Capacity Payments, which is a major reason for the price hike. Recently Govt has terminated contracts of 6 IPPs and working on terminating more.
If govt succeeds in its plans then the consumers will receive a huge relief in electricity tariff. Currently, the reports show that Govt is planning to reduce tariffs from RS 12 to RS 15 per unit from March 2025. Let’s hope for the best.
LESCO Has Started Acting on PM Package
LESCO has started acting on the PM’s Winter Package this month. It issues bills for this month with new rates and gives relief where applied. The users with additional consumption of electricity have received bills with reduced tariffs for additional usage. This will continue till FEB and consumers will enjoy this discounted tariff.
Prime Minister’s Winter Package
The Prime Minister of Pakistan has announced the winter package for the whole country. In this package, the electricity unit will be charged at a fixed rate. The consumers will be charged a new discounted rate for additional use of electricity from the same period of last year. For example, if a consumer consumed 200 units last January and now he consumes 300 units then the additional 100 units will be charged for a new discounted rate.
This discounted PM Package will give relief to consumers and they will get relief from higher electricity bills. The residential users of LESCO will get the benefits of RS 11.42 to RS 26 per unit. While commercial and business users will get a relief of RS 13.46 to RS 22.71 per unit. The industrial consumers will enjoy a reduction in prices from RS 5.72 to RS 15.05 per unit.
It will give relief to consumers from high electricity bills during winter as they have paid huge amounts for their bills during summer. It is a good move by the PM, but he should think to provide a permanent relief in electricity prices for the betterment of the masses.
September’s power tariff slashed by Rs1.28 per unit under FPA
NEPRA ( National Electric Power Regulatory Authority ) in its latest decision gives relief of Rs 1.28 Per Unit to all the consumers of Pakistan except K-Electric consumers. This relief is given under FPA ( Fuel Price Adjustment ) for September.
This benefit will be given to the consumers in the monthly bills for November. This reduction doesn’t apply to K-Electric’s power tariff, which is Karachi’s only electricity provider. Initially, the Central Power Purchasing Agency (CPPA) proposed a 71-paisa-per-unit cut for September, according to its calculations. But after a thorough review and a public hearing on October 30, Nepra decided on an even bigger reduction of Rs1.28 per unit.
This is a step up from August’s decrease of 86 paisa per unit, giving consumers an extra 42 paisa relief per unit for September.
This price reduction will give relief to consumers in the state of inflation.
Consumers set to pay Rs8.7b for idle IPPs
Nepra is considering a proposal to increase electricity prices, which could add around Rs8.7 billion to consumers’ bills nationwide. This move aims to cover payments to Independent Power Plants (IPPs) that weren’t producing power but still received capacity charges, as well as operational costs for power distribution companies (Discos). The current situation is that consumers are already paying a hefty portion of their bills as capacity charges, which are Rs17 per unit, while actual energy generation costs stand at Rs 9.25 per unit.
Discos, including those in Faisalabad, Gujranwala, Islamabad, and other regions, submitted this request to cover maintenance, system charges, and market operation fees. However, efficiency improvements in transmission have saved around Rs2.25 billion. Nepra will hold a public hearing on November 20 to assess the proposal, which, if approved, will raise electricity bills further.
Govt to decrease electricity price by Rs 8-10 in winter
The government’s proposed “Winter Package 2024” aims to boost electricity use during winter by reducing tariffs by Rs 7-8 per unit from December 2024 to April 2025. However, its approval by the IMF remains uncertain, with conflicting reports about the IMF’s stance.
The package targets industrial users, with a potential fixed rate of Rs 20-25 per unit, to counter a 10-12% drop in industrial electricity demand caused by high tariffs and a shift to off-grid systems. Residential users, however, may not benefit, as the government is considering reducing household subsidies to fund the initiative.
While some officials suggest the IMF has tentatively approved the plan for three months, others say discussions are still ongoing. The Ministry of Finance awaits final IMF approval, with the Prime Minister pushing for a quick decision to support industry.
If approved, the proposal will proceed to Nepra. A committee, led by the Petroleum Minister, is also exploring ways to promote electricity use for space heating due to limited winter gas supplies.
Govt Withdraws Subsidy
Earlier govt has given subsidies to consumers to protect them from a price hike in power prices. In the annual budget, govt increases the power prices but gives subsidies to consumers who are consuming up to 200 units in a month. This subsidy was given for a limited time and now it is withdrawn.
Now consumers will be charged with new tariffs and the bills will be higher as compared to previous months. This new tariff is applied from October. Here we will enlist the new price tariff for protected consumers.
The protected consumers consuming up to 50 units per month will be charged Rs 09.39/- per unit. The protected consumers consuming 51 to 100 units will be charged Rs 13.64/- per unit.
While the users who consume 101 to 200 units per month will be charged Rs 29.21/- per unit. This will increase the burden on protected consumers and significantly affect these consumers. The bills for October will be high due to this subsidy withdrawal.
New Surcharge Policy
When a consumer fails to pay his bill within the due date, he is imposed a fine at a specific rate, this fine is called a late payment surcharge. Earlier this was 10% for all consumers and was charged monthly basis.
Now, NEPRA has revised it and introduced a new Surcharge Policy. According to this policy, the consumers will be charged in 2 phases. If a consumer pays his bill within 3 days after the due date, he will be charged 5% of the bill amount. But if he fails to pay the bill in these 3 days then he will be charged 10% of the bill amount.
We can say that NEPRA has given some relief in paying bills with a grace period of 3 days with half late payment surcharge.
85 Paisa Relief in FCA ( FPA )
NEPRA has approved an 85 paisa relief per unit for August 2024. This price decrease will be adjusted in the bills for October. The consumers will see a decrease of Rs 0.85/- Per Unit in their bills. It is a good sign of some relief for the consumers who are paying high prices for electricity. Govt will give Rs 7 Billion in refunds for this month.
