Nearly PKR 12 billion in free electricity granted to power sector employees annually

As citizens wrestle with rising electricity costs, a select segment of power sector employees receives millions of units of free electricity each year, amounting to billions of rupees in waived costs.

Documents reviewed by Nukta reveal that employees from power generation companies, the Water and Power Development Authority (WAPDA), the National Transmission and Dispatch Company (NTDC), the Power Information Technology Company (PITC) and distribution companies are beneficiaries of this ongoing subsidy.

According to the documents, WAPDA and related entities provide free electricity ranging from 100 to 1,300 units monthly to employees from grade one to grade 22. This benefit is extended to approximately 188,151 current and retired employees, consuming a total of 406,383,150 units annually, which costs the state around PKR 11.79 billion per year.

An infographic showing free electricity units allocated to WAPDA employees grade wise.Nukta

The allocation varies by grade. For instance, lower-grade employees, from grade one to grade four, receive between 100 and 300 units, while higher-ranking officials in grades 20 through 22 can use up to 1,300 units per month without charge. This perk includes employees of all 10 distribution companies, including Lahore Electric Supply Company (LESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO), among others.

LESCO, with 35,852 employees, consumes over 79 million free units annually, costing roughly PKR 2.27 billion at current rates. Meanwhile, GEPCO’s 19,984 employees use 38.5 million units, amounting to a PKR 1.79 billion expense. Similarly, 28,506 employees at FESCO receive about 54 million units, costing PKR 1.43 billion each year.

Islamabad Electric Supply Company (IESCO) provides 20,371 employees with nearly 47.5 million units free annually, at a cost of approximately PKR 1.41 billion. Multan Electric Power Company (MEPCO) allocates 51.8 million units to its 26,386 employees, amounting to an annual PKR 1.37 billion. Peshawar Electric Supply Company (PESCO) employees receive 79 million free units, costing PKR 2.44 billion.

Table shows breakdown of free electricity units consumed by employees of different electricity distribution companies.Nukta

Additional figures include Hyderabad Electric Supply Company (HESCO), which provides 29.1 million units free to its 10,340 employees, totaling PKR 970 million. Sukkur Electric Power Company’s (SEPCO) 8,313 employees receive 17.8 million units at a cost of PKR 490 million, and Quetta Electric Power Company (QESCO) supplies 5,604 employees with 12.9 million units, costing PKR 367 million. Even the small Tribal Areas Electric Supply Company (TESCO) allocates 11,100 units annually to its seven employees at a cost of PKR 225,000.

This free electricity benefit, in place since November 1991, also offers a 50% discount to the families of deceased WAPDA employees. Although various governments have tried to revoke or reduce these allowances, these efforts have largely failed, continuing to add billions to the national expense each year.