The National Electric Power Regulatory Authority (NEPRA) has accused the country’s power distribution companies of widespread malpractices and over-billing to over 13 million electricity consumers, with charges reaching as high as 100%.
A recent inquiry report, released on December 4, revealed that all of the country’s power distribution companies (Discos) were consistently overcharging consumers across Pakistan.
“There is [not a] single Disco in the country who is charging bills in 100% correct manner,” the power sector regulator concluded in its 14-page report.
The investigation was prompted by numerous complaints from consumers nationwide regarding “excessive, inflated, and wrong bills” during July and August 2023.
The malpractices involved issuing inflated bills that extended beyond the mandated 30-day billing period.
Shocking disclosures
Based on field visits, verified data, and cross-examination of the Power Information Technology Company (PITC), a government subsidiary, the inquiry disclosed startling revelations.
The actual amounts charged to users often differed from the meter-reading snapshots on their bills, with some snapshots intentionally not taken. Major distribution companies, including Multan Electric Power Company (Mepco) and Lahore Electric Supply Company (Lesco), were identified for sending bills with invalid snapshots.
Furthermore, NEPRA found that 13.76 million consumers in the domestic category were billed for more than the mandated 30-day billing period. This led to the inaccurate charging of “protected” consumers, those using less than 200 kWh per month consistently for six months, at the rate of upper slab users. Consequently, over 0.84 million users were removed from the protected category.
Breakdown of over-charging by different distributors
The report detailed Disco-wise breakdowns, revealing staggering numbers of over-billed consumers. Mepco alone overcharged 7.99 million consumers, while other companies like Gujranwala Electric Power Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) also engaged in significant overbilling.
- Multan Electric Power Company (MEPCO) over-billed 7.99 million consumers in July and August.
- Gujranwala Electric Power Company (GEPCO) overbilled 1.65 million consumers.
- Faisalabad Electric Supply Company (FESCO) over 1.19 million consumers
- Lahore Electric Supply Company (LESCO) overcharged 1.17 million people.
- Hyderabad Electric Supply Company (HESCO) over-billed 730,105 consumers.
- Sukkur Electric Power Company (SEPCO) overcharged 326,249 people.
- Peshawar Electric Supply Company (PESCO) over-billed 313,596.
- Quetta Electric Supply Company (QESCO) overcharged 164,987 consumers.
- Islamabad Electric Supply Company (IESCO) over-billed 45,850 consumers.
The report mentioned the data of nine out of 11 Discos as K-Electric (KE) and Tribal Electric Supply Company did not provide full data. However, KE’s 78,000 consumers in July and 66,000 in August were issued bills based on inaccurate snapshots, according to the report.
Defective Meters
The inquiry further exposed that Discos billed over 0.4 million consumers “on average” during the two months, citing defective meters.
Shockingly, 492,478 defective meters were identified, remaining faulty for periods ranging from two months to over three years. Instead of promptly replacing these meters, Discos charged users on average from the period the meter was declared defective.
Additionally, the report revealed discrepancies in almost 100% of bills from all Discos, including Karachi Electric (KE). Discos were also found to be issuing “fake and frivolous” detection bills, resulting in low recovery ratios, especially for Hesco and Sepco.
NEPRA has recommended legal action against all Discos, urging a revision of inflated bills on a pro-rata basis.
Discos are expected to correct bills within one billing cycle, issue revised bills, and submit compliance reports within 30 days.
NEPRA’s findings cast doubt on the integrity of Discos’ entire revenue streams, including meter reading, billing, and penalties, when these companies are actively campaigning against power theft.
Senator calls for action against Discos for overcharging consumers
Senator Raza Rabbani “strongly condemned” malpractices by the country’s power distribution companies (Discos), saying that it amounted to criminal activity and swift action should be initiated.
Rabbani said the NEPRA inquiry is “one of the gravest malpractices of over-billing in the provision of electricity,” and that “The findings of the report amount to criminal activity.”
“The report also found that the actual amount charged to users differed from the snapshot of the meter reading available on the bills. In some cases, the snapshots were either invisible or deliberately not taken,” the senator said.
He also demanded that the overcharged amount should be adjusted in the upcoming power bills.