Discos seek Nepra’s nod for security deposit hike

ISLAMABAD: Security deposits for electricity consumers may rise to as much as Rs56,111, as eight state-owned power distribution companies (Discos) have approached the National Electric Power Regulatory Authority (NEPRA) to approve higher rates.

The companies argue that the current deposit structure is insufficient to safeguard them against financial risks, especially in the face of surging electricity costs and operational expenses.

The distribution companies, including Peshawar Electric Supply Company (PESCO), Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Hyderabad Electric Supply Company (HESCO), Quetta Electric Supply Company (QESCO), and Tribal Areas Electric Supply Company (TESCO), have filed separate petitions with NEPRA.

These petitions aim to revise security deposit rates to address prevailing economic challenges.

NEPRA has scheduled a public hearing on February 11, 2025, to review the petitions and invited stakeholders, consumers, and the public to provide feedback either in person or virtually.

In their petitions, the Discos propose a framework linking security deposit rates to two months’ revenue, inclusive of taxes, for each tariff category. For urban domestic consumers, rates would consider factors such as property size and average electricity usage. Deposits for consumers in properties up to 10 marlas would be based on three months’ average electricity consumption, while deposits for larger properties would equal one percent of the property’s market value, as determined by Federal Board of Revenue (FBR) rates.