NEPRA imposes fine of Rs50 million each on DISCOs for violations

ISLAMABAD: In a decisive move, the National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs50 million each on K-Electric and other power distribution companies for failing to comply with regulations.

The fines were levied on due to load shedding, technical and commercial losses caused by distribution companies (DISCOs).

NEPRA imposed fines on K-Electric, Sukkur Electric Power Company (SEPCO), Peshawar Electric Supply Company (PESCO), and Hyderabad Electric Supply Company (HESCO) after rejecting their responses to show-cause notices.

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NEPRA’s action follows a comprehensive inquiry revealing that consumers were being overcharged, with allegations of up to 100 per cent additional charges by distribution companies.

NEPRA’s report highlighted that no distribution company was found to be billing correctly, raising questions about the entire revenue process, from meter readings to billing and penalties.

It was discovered that the amount charged to consumers differed from the meter readings shown on the bills, with some images either unclear or intentionally not taken.

This resulted in 840,000 consumers being removed from the protected category, while 52,800 were shifted to the non-lifeline category.

The report indicated that K-Electric issued bills based on incorrect images to 78,000 consumers in July and 66,000 in August. Additionally, over 1.68 million consumers received bills for periods longer than 30 days, with some billed for over 40 days.

NEPRA’s decision reveals that 30 per cent of K-Electric’s feeders are experiencing load shedding, and the company is not adhering to the rules regarding load shedding.

The inquiry found discrepancies between the amount charged to consumers and the meter readings shown on their bills. In some cases, the images were either unclear or intentionally not taken, leading to 840,000 consumers being removed from the protected category and 52,800 moving to the non-lifeline category. Consumers using up to 100 kilowatts per month are considered ‘lifeline’ users.

NEPRA had recommended legal action against all power distribution companies, including K-Electric, for these violations.