Power Sector Employees Get Free Electricity Worth Rs. 15 Billion Annually

During a recent meeting of the Senate Standing Committee on Power, it was revealed that about 190,000 power sector employees receive free electricity worth Rs. 15 billion every year.

In response to a question about free electricity for power sector employees, the Power Division Secretary stated that free electricity is provided exclusively to employees of electricity companies, WAPDA, and GENCOs.

Around 190,000 employees benefit from this, with the cost amounting to Rs. 1.3 billion monthly and Rs. 15 billion annually. On average, each employee receives free electricity valued at Rs. 78,000 per year.

The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, was informed that the power sector’s installed generation capacity has decreased to 39,000 MW from 42,000 MW due to the retirement of inefficient power plants. Furthermore, five more power plants with a combined capacity of 2,500 MW are scheduled for retirement.

Federal Minister for Power Awais Leghari told the committee that the Power Division is developing a winter electricity package with an annual incentive package.

He explained that K-Electric’s elevated electricity costs result from relying on costly production sources. The minister also briefed the committee on the ongoing issues with independent power producers (IPPs).

The committee was informed that K-Electric’s high power generation costs have led the government to supply electricity from the national grid and allocate a Rs. 170 billion subsidy to ensure consistent tariffs nationwide.