Power companies overbilled 20m users by Rs244b, audit reveals

ISLAMABAD: In a staggering revelation, the Auditor General of Pakistan has disclosed that eight power distribution companies overbilled consumers by Rs244 billion during the fiscal year 2023-24, sending inflated electricity bills to around 20 million users.

According to the audit report, these companies issued additional charges for 904.6 million electricity units beyond actual consumption.

The companies named in the report include IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO.

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The audit highlights serious financial irregularities in the accounts of these companies. In just one month, five distribution companies overbilled 278,649 consumers by Rs47.81 billion.

The report further states that Rs22 billion was overcharged under the pretext of recovering line losses through inflated load estimations. Notably, QESCO alone overbilled agricultural consumers by over Rs148 billion.

Additionally, consumers were refunded Rs5.29 billion that had been overcharged due to incorrect meter readings. PESCO reportedly adjusted Rs2.18 billion under multi-credit adjustments for its consumers. Moreover, 1,432 feeders were used to send out Rs18.64 billion in extra charges, the report said.

Responding to the findings, the Ministry of Energy stated that the report pertains to the previous fiscal year, when a caretaker government was largely in place.

The ministry maintained that the current government had initiated reforms from day one to curb overbilling and improve meter reading accuracy.

The Power Division reiterated its commitment to ensuring transparency in billing systems and said structural reforms were underway to prevent such practices in the future.

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It claimed to have taken several major sector to lighten the burden from the power sector, including replacement and sale of outdated power plants.

The move would directly benefit the public, as the capacity charges of these idle plants had been contributing to consumers’ electricity bills, which are now expected to reduce.