Employees of power sector entities: Nepra opposes free electricity, monetisation

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has opposed free units or monetisation to employees of power sector entities and WAPDA, saying that employees should be given utility allowance like other public sector organisations instead of allowing units or their monetisation.

These comments were offered by Nepra on a summary of Power Division titled “monetisation of free electricity units admissible to employees of the power sector companies”.

The Cabinet Committee on Energy (CCoE) headed by Minister for Energy, Muhammad Ali, was scheduled to discuss the proposal of Power Division on Tuesday (yesterday) but the meeting was rescheduled for October 23, 20023 due to other pressing engagement of key CCoE members.

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Finance Division has opposed free electricity to employees and stated that “Finance Division does not support the summary with a view that provision of free electricity in these organisations/ entities’ employees from BS-l to Bs-22 or any other Federal, Provincial Government employees and any other high dignitaries/ institution, organisations may immediately be discontinued. Similarly, no such allowance in lieu of free electricity be granted to anyone.”

Power Division, in its summary has explained that officer level employees of WAPDA and companies including ten power distribution companies (Discos), four Generation companies (GENCOS), National Transmission and Dispatch Company (NTDC), and Power Information Technology Company (PITC) are being provided free electricity facility in the shape of units as per their BS: (i) BS-17, 450 free units for non-generation staff and Wapda staff per month, 650 units for generation staff; (ii) BS-18, 600 free units for non-generation and Wapda staff and 700 free units for generation staff per month; (iii) BS-19, 880 free units of non-generation and Wapda staff and 1100 units for generation staff; (iv) BS-20, 1100 free units for non-generation and Wapda staff; and (v) BS-21, 1300 free units for non-generation and generation staff. According to Power Division, as part of service benefit, the facility of free electricity was allowed in 1974 and continued to the employees of corporatised companies, i.e., Discos, Gencos, NTDC, PITC and WAPDA till date for employees recruited before 2021. After 2021, as per policy all inductions in officer cadre are being made on lump sum contract basis and facility of free units is not part of the said contract. The units are charged in the monthly bills and unconsumed units’ are carried forward in the following months. The expenditure is booked in the Accounts of respective Discos, besides; the amount of Sales Tax is also paid by the respective Company. The employee pays only PTV fee in case of employees of NTDC, and respective Discos bill the amount to NTDC.

The Senate Standing Committee on Power and the Public Accounts Committee (PAC) have recommended that the facility of free electricity being provided to the employees of power sector may be monetised, and it may be paid with monthly salary to the employees.

In order to address this issue, Power Division has proposed following measures for the consideration of the CCE): in the first phase, the electricity facility to in-service officers (BS-17 and above) of WAPDA, Discos, Gencos, NTDC and PITC may be monetised, i.e., Rs 15,850 for 450 units for BS-17 officers of non-generation and WAPDA officers, Rs 24,570 for 650 units for generation staff , BS-18, Rs 21,996 for 600 units to non- generation and WAPDA and Rs 26,460 for 700 units to generation staff. For BS-19, Rs 37, 594 for 880 units to non-generation and Wapda, Rs 42,720 for 1000 units to generation staff, BS-20. 46,992 for 1100 free units to non- generation, generation and WAPDA and BS 21, Rs 55, 536 for 1300 free unit to non-generation and generation staff.

Power Division maintains that all the in-service employees in grade 17 and above of entities shall pay the electricity bills issued by the respective Discos against the reference numbers already available with the Discos.

In the earlier circulated version WAPDA employees were not included, but have been added in the light of discussions held in a meeting at Prime Minister’s office of August 27, 2023 duly attended by Chairman WAPDA. For future, these rates stand frozen.

Nepra argues that power companies’ employees should be allowed utility allowance like other public sector organisations instead of allowing units or monetisation.

WAPDA has pointed out that by monetisation of free electricity units no saving on WAPDA’s exchequer will be witnessed as WAPDA will have to pay cash equal to cost of electricity to the employees, which it is otherwise paying to the respective Discos. WAPDA has; therefore, not supported the monetisation of free electricity units being provided to its employees.

Copyright Business Recorder, 2023