The new electricity billing system in Pakistan has become a major burden for consumers, with increased per-unit prices, a plethora of taxes, and a complex billing structure.

The introduction of new terms like “slab-based billing,” “protected and non-protected categories,” and “pro-rata (automatic reading) for monthly meter readings up to 30 days” is intended to improve the system, but it is effectively making electricity inaccessible for the public.

PESCO spokesperson Muhammad Usman told Aaj News today that before the implementation of the pro-rata consumption policy, 1.8 million people were in the protected category. After the policy came into effect in April this year, the number of protected consumers in the province increased by 400,000, reaching 2.2 million, and exceeded 2.4 million in May.

PESCO Sub-Division Gulberg’s SDO Talha Zahid told Aaj News that the tariff for electricity generated from IPPs, hydropower, coal, or oil is very expensive in the country, costing around Rs35 to 42 per unit. The government introduced the protected and non-protected category policy to provide relief to the poor, aiming to subsidize the tariff for consumers with monthly consumption up to 200 units.

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A consumer’s bill reaches 2,500 to 3,000 rupees for 199 units, but if they consume 201 units they are automatically shifted to the non-protected category for the next six months, resulting in a significant increase in their tariff. This leads to consumers making multiple trips to PESCO offices to complain about the high bills.

Pro-rata consumption policy

NEPRA introduced the pro-rata consumption policy in April this year. The main objective of this policy was to ensure that meter readings are averaged out to 30 days, even if they are taken more than or less than 30 days due to any reason.

Protected/Un-protected

In 2021, the government introduced the protected and non-protected categories. The aim was to determine the basic tariff for electricity for poor or low-income families. The basic tariff for electricity in the protected category ranges from Rs7 to 10 per unit, while in the non-protected category, it reaches Rs22 to 28 per unit, which further increases with increased consumption.