The Power Division on Tuesday notified a policy discontinuing complimentary electricity units for Grade-17 and above officers in power-related companies and the Water and Power Development Authority (WAPDA), with effect from Dec. 1, exchanging the benefits for monetary compensation through their salaries.
According to the notification, the policy approved by the interim federal government would apply to employees of WAPDA, and employees of ex-WAPDA companies, including distribution companies (DISCOs), generation companies (GENCOs), the National Transmission and Dispatch Company (NTDC) and the Power Information Technology Company (PITC). It said the policy was approved during a cabinet meeting on Oct. 26, adding it was also decided to freeze the existing rates, with any future changes requiring prior approval of the federal cabinet.
In the first phase, per the notification, free electricity for in-service employees of Grade-17 and above has been monetized based on the supply tariff issued on July 26, 2023, excluding taxes and duties. “Henceforth, all the in-service employees in grade-17 and above entities shall pay the electricity bills issued by respective DISCOs against the reference numbers already available with DISCOs,” it said.
Explaining the monetization break-up, the notification said Grade-17 employees granted 450 free units per month would be paid Rs. 15,858/month instead, while their counterparts in GENCOs, entitled to 650 units, would receive Rs. 24,570/month in compensation.
For Grade-18 employees of DISCOs and WAPDA, entitled to 600 units/month, the compensation is fixed at Rs. 21,996/month, while their counterparts in GENCOs, allowed 700 units, would be paid Rs. 26,460/month.
For Grade-19 employees in DISCOs and WAPDA, granted 880 units/month, the monetization equals Rs. 37,594/month, while their GENCO counterparts, entitled to 1,000 units, would get Rs. 42,720. Meanwhile, Grade-20 employees of DISCOs, WAPDA, and GENCOs, entitled to 1,100 units/month, would now get Rs. 46,992/month. And Grade-21 employees, entitled to 1,300 units/month, would be granted compensation of Rs. 55,536/month in their salaries.
The government had announced an intent to replace free electricity units with monetary compensation earlier this year amidst nationwide protests over inflated electricity bills in July and August. During the protests, demonstrators had specifically called out the free electricity for senior officials as proving a burden on the national exchequer and driving up their bills.