The Peshawar Electric Supply Company (PESCO) has ended free electricity units for its employees. The company has replaced the benefit with monthly cash allowances based on pay grades.
The decision was approved by the PESCO Board of Directors. The new policy monetises electricity benefits previously provided to eligible employees.
Under the revised system, employees will receive fixed monthly compensation instead of free electricity units. The amount will depend on their respective pay grades.
Employees in Grade 17 will receive Rs15,858 per month. The allowance will replace the previous benefit of 450 free electricity units.
Grade 18 employees will receive a monthly allowance of Rs21,996. This amount will replace 600 free electricity units previously provided under the employee benefit.
For Grade 19 employees, PESCO has approved a monthly allowance of Rs37,954. The allowance will replace 880 free electricity units.
Grade 20 officers will receive Rs46,992 per month under the new arrangement. This will replace the previous benefit of 1,100 free electricity units.
The change represents a shift from providing electricity directly to offering financial compensation. Employees will now receive a fixed amount according to their grade instead of consuming a specified number of free units.
The monetisation policy is expected to change how electricity benefits are provided to PESCO employees. The new system will also make the value of the benefit more clearly defined in monetary terms.
However, implementation of the policy will remain subject to rules and regulations issued by the Federal Power Division. PESCO employees will therefore receive the allowances under the conditions set by the relevant authorities.
The decision comes amid broader efforts to review electricity-related benefits in the power sector. Free electricity units provided to employees have remained a subject of discussion as authorities seek to control power sector costs.
Under the previous system, employees in different grades received different numbers of free electricity units. The number of units increased with the employee’s pay grade.
The new policy replaces those units with fixed monthly payments. This means employees will no longer receive a separate free electricity quota under the revised arrangement.
For Grade 17 employees, the monthly compensation is linked to 450 units. Grade 18 employees will receive compensation corresponding to 600 units.
Similarly, Grade 19 employees will receive the allowance replacing 880 units. Grade 20 officers will receive compensation in place of 1,100 free units.
The change is expected to bring greater consistency to the financial value of the employee benefit. However, the final implementation will depend on applicable federal rules and conditions.
PESCO is responsible for electricity distribution across several areas of Khyber Pakhtunkhwa. Changes in its employee policies can therefore affect a large workforce across the company’s operational areas.
The monetisation decision also comes at a time when electricity costs remain a major concern for consumers across Pakistan. Households are facing higher power bills, while authorities continue to examine ways to reduce pressure on the power sector.
The new PESCO policy does not eliminate employee compensation. Instead, it changes the form of the benefit from free electricity units to monthly cash allowances.
Employees will now receive the approved amount according to their pay grade. The policy will continue to operate within the framework established by the Federal Power Division.
Also read: Will Electricity Bills Finally Drop? Govt Reveals Plan
