National Electric Power Regulatory Authority (Nepra) has approved a 14% markup on delayed installment payments for electricity bills, adding to the financial strain already faced by consumers grappling with record-high tariffs.

This new policy, implemented at the request of the Power Division and distribution companies (Discos), applies to all consumers, including those served by K-Electric.

While Nepra rejected several other punitive measures proposed by Discos, including hefty fees for expedited new connections and penalties for multiple connections, the 14% markup on delayed installments has raised concerns.

The regulator’s notification states that no markup will be applied if the first installment is paid on time.

However, subsequent installments will accrue a 14% annual interest rate on a pro-rata basis. Consumers are also required to request extensions for bill payments in advance.

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Speaking to Dawn, Former Energy Planning Commission member Syed Akhtar Ali criticized the decision, arguing that the 14% markup is excessive and should be accompanied by a reduction in the 10% late payment surcharge (LPS), which he believes is also unjustified.

A Nepra official defended the decision, stating that the 14% markup was already being charged by Discos and was simply being formalized by the regulator.

He also confirmed that Nepra had rejected the Discos’ demand for a Rs15,000 fee for expedited single-phase connections and Rs30,000 for three-phase connections.

The Discos had also sought permission to confiscate appliances and impose hefty penalties on consumers found to be stealing electricity, as well as the removal of multiple connections on residential premises without separate entrances. Nepra rejected these proposals.