By Staff Reporter
ISLAMABAD: Pakistan’s energy watchdog has hit two state-owned power distributors with fines totaling Rs248 million for overcharging customers via faulty meters and cutting power on questionable commercial grounds, exposing persistent flaws in the nation’s strained electricity sector.
The National Electric Power Regulatory Authority (Nepra) issued the penalties on Friday in separate rulings after probes spanning more than three years. Gujranwala Electric Power Company (Gepco) faces a Rs200 million fine for overbilling consumers due to slow meters, while Sukkur Electric Power Company (Sepco) was docked Rs48 million for unauthorised loadshedding tied to aggregate technical and commercial (ATC) losses, a practice Nepra deemed illegal.
The decisions underscore mounting frustrations with Pakistan’s power distribution network, where billing disputes and chronic outages have fueled consumer anger amid rising tariffs and unreliable service.
Nepra launched its investigation into Gepco in August 2022 after 1,298 customers complained of prolonged overbilling linked to sluggish meters. The case advanced through investigations, a show-cause hearing, and other proceedings. “Keeping in view the submissions of Gepco, the evidence available on record, provisions of relevant laws and applicable documents, the authority rejects the response of Gepco… and imposed a fine of Rs200m,” Nepra said in its order.
The regulator ordered Gepco to refund or adjust excess charges levied on the 1,298 affected consumers beyond two billing cycles, as confirmed by Gepco’s own September 9, 2022, report. The utility has 30 days to comply, or face an additional Rs100,000 daily penalty for non-compliance.
Gepco issued “detection bills” for meter slowness starting January 1, 2021, violating the Consumer Service Manual (CSM), according to its own report. Nepra had previously directed Gepco in February 2023 to adjust these supplementary bills in future cycles for the affected customers—a mandate the company failed to follow. “Charging of supplementary bills on account of slowness for more than two billing cycles is blatant disregard of relevant provisions of CSM and has also caused serious harm to the reputation of licensee and unwarranted financial burden on the affected consumers,” Nepra stated, faulting Gepco for ignoring orders to revise the charges.
In a parallel ruling, Nepra fined Sepco Rs48 million, calculated at Rs100,000 per day since April 4, 2024, when it was ordered to halt ATC-based loadshedding, a practice banned as illegal. Sepco argued the outages began in March 2014 under instructions from the Ministry of Energy, with loss categories defined by a ministry subsidiary.
Nepra rejected this defense, directing Sepco to “immediately cease and refrain from continuing AT&C-based load shedding in contravention of the Authority’s directives and the applicable legal framework.” The regulator imposed a further Rs100,000 daily fine from April 4, 2024, until compliance, with payment due within 15 days. “Failure to comply shall entail recovery of the outstanding amount under Section 41 of the Nepra Act as arrears of land revenue or through any other appropriate legal means, in addition to any further legal action,” Nepra warned.
The regulator found Sepco had breached its own ATC policy, imposing excessive outages beyond scheduled cuts. Randomly selected feeders showed no technical or financial improvements over four years, despite hefty operations and maintenance budgets from Nepra.
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