ISLAMABAD – After a massive increase in power tariff in Pakistan over the last few months, the government is reportedly planning to increase the security fee for new power connections.
Reports suggest the Power Division has moved the National Electric Power Regulatory Authority (Nepra) to increase the security fee for domestic connections from Rs1,220 to Rs18,000.
On the other hand, consumers using less than 10 kilowatt will pay at the rate of Rs20,000 per kilowatt. Those applying for a single-phase connection will pay a security fee of Rs24,000 per connection.
Also, the Power Division has sought an increase in the security fee for rural consumers to Rs7,800 per kilowatt, with the rate calculated at 1 percent of the property value in case it covers an area of over 10 marlas.
Sources say the new calculations are based on an estimated amount equivalent to three months of billing. If Nepra approves the proposed hike in fees, new demand notices would be issued on the basis of revised formula.
The planned hike in security fees will not only affect domestic consumers; it will also affect new commercial and small industrial consumers. The proposed increase for these two categories of consumers is from Rs2,010 per kilowatt to Rs57,000 per kilowatt.
Other categories of consumers to be covered by the security fee hike are streetlights, large industries and housing societies.
The planned increase in security fee for new electricity connections comes as there are suggestions to add new consumers to increase power consumption and reduce the capacity charges/payments paid to the power producers.
Hence, the move instead of encouraging electricity consumption will discourage people from applying for new connections amid stubborn inflation and purchasing power crisis. The proposal, if approved, can automatically shift the focus to installing more and more solar panels, which would help provide cheaper energy and tackle the climate crisis.
