Lahore Electric Supply Company (LESCO) has ended the facility of free electricity units for officers of grades 18 to 20. After the implementation of the new policy, the concerned officers have started receiving regular electricity bills like other consumers, which is being termed a major development in the series of revisions to the system of incentives in the electricity sector.
According to sources, the decision is part of the government’s efforts to restructure the incentive structure in power distribution companies, which aims to reduce costs, improve financial discipline and review the incentive system in various sectors.
According to reports, for the first time in almost three decades, LESCO officers have been deprived of the facility of free electricity units. As a result of this change, officers will now have to bear all the expenses of their household electricity themselves, which is expected to significantly increase the monthly financial obligations of some employees.
According to LESCO sources, under the previous policy, Grade 18 officers were provided with 6,000 free electricity units annually, Grade 19 officers with 8,000, and Grade 20 officers with 10,000. After the implementation of the new policy, this facility has been completely abolished, and all officers will have to pay bills according to their actual electricity consumption.
Experts associated with the energy sector say that the review of incentives in government institutions is considered an important part of financial reforms. According to him, if such policies are implemented uniformly in all the concerned institutions, it can help in achieving the goals of institutional transparency, financial discipline and cost reduction.
Sources say that a similar decision has also been taken for officers of grades 18 to 20 of other electricity distribution companies (DSCOs) of the country. However, some distribution companies have obtained injunctions from the relevant courts, due to which the facility of free electricity units remains temporarily in place, and the matter is pending till the completion of the court proceedings.
On the other hand, energy sector observers believe that if this policy is implemented uniformly in all the DISCOs across the country, it can have far-reaching effects on the financial impact as well as the incentive system in government institutions. However, future strategies and court decisions will play an important role in this regard.
No official details have been released by LESCO or the Ministry of Energy regarding the financial impact of this decision or the alternative system of incentives in the future; however, the move is being seen as a significant administrative change in the context of the ongoing reform process in the energy sector.