New electricity connection security fee update in Pakistan

The National Electric Power Regulatory Authority (NEPRA) has delayed its ruling on the electricity supply companies’ requests to increase the security deposit for new connections. The decision will remain pending until a full audit of the companies involved is completed.

The electricity suppliers had proposed a substantial hike of over 200% in the security deposit, which would significantly raise the cost of obtaining a new electricity connection.

During a hearing, NEPRA members expressed their dissatisfaction with the explanations offered by the representatives of the electricity companies.

Members Rafiq Ahmed Sheikh, Mutahir Niaz Rana, Amina Rashid, and Maqsood Anwar Khan questioned whether the proposed increase was an attempt to shift the burden of the companies’ inefficiencies onto consumers.

Previously, NEPRA had instructed K-Electric and Sukkur Electric Supply to submit similar requests for security deposit hikes, with the intention to apply any changes uniformly across the board, based on the same tariff structure.

The proposed increase has raised concerns, particularly among business owners. Tanveer Bari of the Karachi Chamber of Commerce and Industry (KCCI) criticized the plan, arguing that the proposed jump in security deposit from Rs2,000 to Rs54,000 would be unaffordable for many consumers. This move, Bari warned, could drive businesses and individuals to look for alternative energy sources.

Read More: Solar panels can now generate electricity at night