Nepra launches investigation into overbilling and MDI manipulation

WEB DESK: The National Electric Power Regulatory Authority (NEPRA) has established an investigation committee to address concerns of overbilling and manipulation of the Maximum Demand Indicator (MDI) by electricity distribution companies (Discos) and the industrial sector from January to June 2024.

This action follows a directive from the Prime Minister in June 2024, instructing the Power Division to investigate these issues. The Power Division subsequently requested Nepra to conduct a thorough forensic audit and submit a report to the Prime Minister’s Office.

According to Business Recorder, Nepra received a letter on August 1, 2024, from the Power Division, which pointed out that Discos were involved in overbilling, and certain industrial companies were tampering with the MDI, a key measure of power usage.

In response, Nepra initiated an investigation under section 27A of the Regulation of Generation, Transmission & Distribution of Electric Power Act (XL of 1997).

The investigation committee comprises Lashkar Khan, Director of the Consumers Affairs Division; Hafiz Irfan Ahmed, Additional Director (M&E); Abdullah Malik, Assistant Director (Tariff); and relevant Nepra regional officials. Their mandate includes gathering data, conducting on-site verifications, and visiting the offices of PITC, all Discos, and K-Electric (KE), if necessary.

The committee is tasked with investigating overbilling by Discos during the specified period, identifying discrepancies, and assessing the financial impact on all consumer categories.

They will also examine the manipulation of MDI by the industrial sector, analyze records and practices for irregularities, and determine whether any officers of Discos were involved.

Nepra has directed all Discos, KE, and PITC to cooperate fully with the investigation. Non-compliance could result in legal action.

The committee is required to submit a detailed report, including evidence, findings, and recommendations, within one month of its formation, addressing the issues identified during the investigation.

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