During a recent meeting of the Senate Standing Committee on Power, it was revealed that approximately 190,000 power sector employees receive free electricity worth Rs. 15 billion each year.
In response to a query regarding this benefit, the Power Division Secretary clarified that the free electricity is provided solely to employees of electricity companies, WAPDA, and GENCOs.
This benefit covers around 190,000 employees, costing Rs. 1.3 billion per month and totaling Rs. 15 billion annually. On average, each employee receives free electricity valued at Rs. 78,000 per year.
The committee, led by Senator Mohsin Aziz, also learned that the power sector’s installed generation capacity has dropped from 42,000 MW to 39,000 MW due to the decommissioning of inefficient power plants. Additionally, five more power plants with a combined capacity of 2,500 MW are slated for retirement.
Federal Minister for Power Awais Leghari informed the committee that the Power Division is creating a winter electricity package with an annual incentive package.
He noted that K-Electric’s high electricity costs stem from its reliance on expensive production sources. The minister also updated the committee on the ongoing issues with independent power producers (IPPs).
The committee was further informed that the high power generation costs at K-Electric have prompted the government to supply electricity from the national grid and allocate a Rs. 170 billion subsidy to maintain uniform tariffs nationwide.
