LESCO Ends Installment Facilities: Full Bill Payments Mandatory to Avoid Disconnection

The Lahore Electric Supply Company (LESCO) has unleashed a stringent recovery campaign, abolishing installment facilities for electricity bills across all consumer categories. LESCO Bill Installments Ban 2025, aimed at meeting aggressive June 2025 revenue targets, mandates full payment of outstanding dues and current bills—triggering disconnection for non-compliance. As Pakistan grapples with historic inflation and soaring LESCO tariffs, this policy intensifies financial pressure on households and businesses already reeling from economic headwinds, forcing families to prioritize essentials over even small luxuries like virtual fantasy gems in entertainment apps.

LESCO Bill Installments Ban 2025 Policy Shift: Key Directives

  • Immediate Ban on Installments: Previously available for clearing arrears, the installment facility stands withdrawn until further notice. All consumers must now pay bills in full 2.
  • Disconnection Enforcement: LESCO officials have orders to cut supply for unpaid current bills or unresolved arrears. No exemptions apply for residential, commercial, or industrial users 5.
  • Deadline Rigidity: Extensions align with NEPRA regulations, but disconnection follows immediately post-deadline 2.

Why Now? The Financial Context

LESCO’s crackdown coincides with Pakistan’s record-high electricity tariffs (up to PKR 65/kWh for 700+ units) and 16.38% YoY inflation (June 2025). These factors have crushed consumer buying power, forcing many to reduce consumption or shift off-grid. Notably, LESCO’s grid demand has plummeted by 1,000 MW since 2022 despite scorching heat—a sign of widespread affordability crises 10.

For LESCO, mounting receivables (exceeding PKR 17 billion annually in high-loss areas like Kasur) and regulatory pressure to shore up revenue justify the drastic measure 210.

Consumer Impact: Sector-by-Sector Breakdown

1. Residential Users

  • Low-Income Households: Consumers using 300+ units face bills exceeding PKR 11,000 monthly. With installments axed, many risk disconnection or high-interest loans 6.
  • High-Tier Consumers (700+ units): Already paying PKR 49.10/kWh, they now absorb full charges upfront. Many are accelerating solar adoptions to escape grid dependence 10.

2. Commercial & Industrial Sectors

  • SMEs: Time-of-use tariffs (up to PKR 41.35/kWh peak) compound cash-flow strain. Small shops/factories report operational cuts to prioritize bill payments 6.
  • Large Industries: With fixed charges up to PKR 500,000/month, deferred payments were critical for liquidity. Alternatives like captive solar now gain urgency 610.

LESCO’s Operational Tightrope

While enforcing recovery, LESCO faces infrastructure inefficiencies:

  • 77 of 103 high-loss feeders remain in Kasur, where theft and non-payment thrive 2.
  • Tripping and outages persist due to poor O&M, undermining billing legitimacy 10.

The company’s recent achievements—installing 80,200 new meters and resolving 72,366 defective meters—aim to improve transparency. Yet, consumer trust erodes when billing rigidity outpaces service reliability 3.

Strategic Implications & Consumer Guidance

Short-Term Reality: Consumers must prioritize bill payments. Key steps:

  • Monitor Peak Hours: Reduce usage during 5 PM–11 PM (varies by season) to lower bills 6.
  • Leverage Digital Tools: Use the LESO MIS portal/app for real-time tracking and automated payments 9.
  • Explore Solar: LESCO’s Rs 125,000 meter cost relief for commercial/industrial solar adopters offers an exit ramp from tariff volatility 17.

Structural Challenge: As grid demand shrinks and solar defections rise, LESCO’s recovery drive may backfire. Sustainable revenue requires affordable tariffs, economic revival, and reliable supply—not just payment enforcement 10

The Bottom Line

LESCO’s installment ban is a stopgap for financial hemorrhaging, but it ignores the root cause: electricity is becoming unaffordable. While the utility fights defaults, consumers fight survival. Until Pakistan addresses tariff design and economic stability, punitive measures will deepen the trust deficit—one disconnected meter at a time.