Late payment surcharge (LPS)
Definition. The late payment surcharge is the additional amount that becomes payable when an electricity bill is settled after its due date, and it is the difference between the two figures printed at the foot of every Pakistani bill.
Also called: LPS · Late payment charges · Surcharge after due date
Where you see it: Implicit in the 'payable after due date' box; explicit as an LPS line on the following bill if the previous cycle was paid late.
How it is calculated
For domestic consumers the surcharge is a percentage of the current bill amount, applied once when the due date passes — not daily interest. The percentage is set in the tariff notification and differs between residential and industrial categories.
Because it is a percentage of the bill, the rupee cost of being a day late is proportional to the bill. A late 12,000-rupee summer bill costs several times what a late 2,000-rupee winter bill does.
It compounds through arrears
An unpaid bill becomes arrears on the next cycle, and the next cycle's surcharge is computed on a total that already includes the earlier one. Two skipped months is meaningfully worse than twice one skipped month.
This is the mechanism by which a modest missed bill turns into a disconnection-sized balance in a season.
When it comes off
A surcharge applied despite timely payment is reversed on production of a dated receipt. This is common when a bank counter posts a payment two days after taking it.
A surcharge applied because the bill never arrived is a harder argument, because delivery is not a legal precondition of payment — but sub-divisional officers do have discretion, and a first occurrence with a clean payment history is often waived.
Frequently asked questions
Is the surcharge charged per day of delay?
No. It is a one-time percentage applied when the due date passes. Paying one day late and paying ten days late cost the same, though staying unpaid into the next cycle does not.
Does paying part of the bill before the due date reduce the surcharge?
Partial payment does not stop the surcharge on the remainder, and the receipt is applied oldest-first against any arrears before it touches the current month.
Related terms
- Due date — How the two amounts on a Pakistani electricity bill relate to the due date, what happens on weekends and holidays, and how long a bank takes to post a payment.
- Arrears — How arrears accumulate on a Pakistani electricity bill, why they can appear on an account you have always paid, and the order in which a payment is applied against them.
Go further
Back to the full 44-term glossary, or open your own bill with the reference number lookup.