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.

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.