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Business & CommerceHeadline

LESCO officials lose free electricity perk as billing crackdown hits home

Last updated: July 12, 2026 4:45 pm
Haris Ali
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LESCO officials lose free electricity perk as billing crackdown hits home
LESCO officials lose free electricity perk as billing crackdown hits home
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Lahore Electric Supply Company (LESCO) staff are facing a sharp reality check this month. For the first time, employees across the board have received standard electricity bills, signaling an end to the long-standing practice of free unit allocations.

The move marks a departure from decades of utility-funded perks that have drawn intense public scrutiny. As the national power sector struggles with circular debt and systemic transmission losses, the federal government’s directive to strip away these benefits is being enforced with immediate effect.

For a mid-level LESCO engineer, the arrival of a bill is more than just a piece of paper. It represents a shift in the corporate culture of Pakistan’s state-owned distribution companies (DISCOs). For years, the provision of free or subsidized electricity was treated as an invisible component of the compensation package. Now, those same employees are seeing the market-rate cost of their own household consumption.

The decision follows mounting pressure from the Power Division and international lenders, both of whom have flagged the high cost of “free units” as a drain on national resources. Industry analysts estimate that these perks cost the exchequer billions annually—funds that could otherwise be diverted toward grid maintenance or reducing the high tariffs currently passed on to the average consumer.

Field staff in Lahore confirmed the receipt of the bills earlier this week. While the official notification from the Ministry of Energy was expected, the speed of implementation caught many off guard. Some union representatives have already voiced concerns, labeling the decision a breach of existing employment contracts, but the administration remains unmoved.

The policy isn’t just about cutting costs; it’s a bid to restore public confidence in a sector plagued by inefficiencies. When the public sees utility providers exempting themselves from the very high tariffs they manage, the social contract fractures. By forcing staff to pay, the government is attempting to signal that no one is immune to the ongoing energy crisis.

Whether this policy survives legal challenges from employee unions remains to be seen. For now, however, the meters are running—and for the first time, LESCO officials will be paying for every watt they consume.

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