By Staff Reporter
ISLAMABAD: Pakistan’s electricity regulator has accused the country’s power distribution companies of overcharging customers by as much as 100 percent, in a report that exposed widespread malpractices and over-billing in the power sector.
The National Electric Power Regulatory Authority (Nepra) said in a report released on Tuesday that it had conducted a comprehensive inquiry into the billing practices of the distribution companies, or Discos, after receiving complaints from consumers across the country.
The report, which covered the billing period of July and August 2023, revealed that the Discos were charging customers more than the actual meter readings, billing them for longer periods than allowed by law and using defective meters to charge them on an average basis.
The report also cast doubt on the integrity of the Discos’ entire revenue streams, from meter readings to billing and penalties. The allegations come at a time when the Discos are carrying out a nationwide campaign against power theft.
Nepra said it had collected data from nine out of 11 Discos, as well as the Power Information Technology Company (PITC), a government subsidiary with access to power sector data. The regulator also conducted field visits and cross-examination of the Discos’ chief executive officers.
The inquiry found that the actual amount charged to customers differed from the snapshot of meter readings available on their bills. In some cases, snapshots were either invisible or deliberately not taken. Multan Electric Power Company (Mepco), Lahore Electric Supply Company (Lesco), Quetta Electric Supply Company (Qesco), and Sukkur Electric Power Company (Sepco) sent the most bills with invalid snapshots.
The regulator also found that the customers were billed beyond the mandated 30-day billing period, resulting in higher charges for lower-income users. Under the law, meter readings should be taken for less than 30 days or a maximum of 30 days. However, Nepra found that 13.76 million customers in the domestic category were billed based on readings of more than 30 days in those two months, while 3.2 million were charged a higher slab rate due to the extended billing period.
This moved 0.84 million users out of the protected category, while the status of more than 52,800 customers was converted to non-lifeline. Customers using up to 100 kWh per month are classified as lifeline.
According to the Disco-wise breakdown, Mepco alone over-billed 7.99 million customers in July and August. Gujranwala Electric Power Company (Gepco) overbilled 1.65 million customers, Faisalabad Electric Supply Company (Fesco) over 1.19 million customers, Lesco 1.17 million, Hyderabad Electric Supply Company (Hesco) 730,105, Sepco 326,249, Peshawar Electric Supply Company (Pesco) 313,596, Qesco 164,987 and Islamabad Electric Supply Company (Iesco) 45,850. The data pertained to nine out of 11 Discos as K-Electric (KE) and Tribal Electric Supply Company did not provide full data.
The report, however, said that KE’s 78,000 customers in July and 66,000 in August were issued bills based on inaccurate snapshots.
A total of 10.68 million customers were billed for more than 30 days, a period, which in some cases, extended even beyond 40 days. Over 0.24 million customers were charged for a billing period of more than 40 days.
The report also found that the Discos billed over 0.4 million customers on average during these two months on the pretext of defective meters. A total of 492,478 defective meters needed replacement by the end of August 2023. These meters had remained defective for two months to more than three years. Under the law, such meters must be replaced within two billing cycles. The respective Discos, instead of replacing meters, charged customers on an average basis from the period the meter was declared defective.
Nepra said it would take strict action against the Discos for violating the law and customer rights. It also directed Discos to refund the excess amount charged to the customers in the next billing cycle.
The power sector regulator also recommended the government to take measures to improve the governance and performance of the Discos and to ensure transparency and accountability in the billing system. It also urged the customers to check their bills and report any discrepancies to the concerned authorities.
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