Audit uncovers widespread overbilling by power distribution companies

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Audit uncovers widespread overbilling by power distribution companies
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ISLAMABAD: A recent government audit has uncovered massive financial irregularities and overbilling practices across Pakistan’s power distribution companies, revealing a staggering Rs244 billion in excess charges levied on consumers.

According to official documents, eight major electricity distribution companies — including IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO — were involved in systematic overbilling aimed at concealing line losses, electricity theft, and poor operational efficiency.

The audit report highlights that even vulnerable groups such as domestic users, agricultural tube well owners, and deceased individuals were not spared. MEPCO alone issued bills worth Rs49.6 million to deceased persons, while QESCO overbilled agricultural consumers by more than Rs148 billion during the 2023-24 fiscal year to hide its inefficiencies.

In just one month, five companies overbilled nearly 279,000 consumers by Rs47.81 billion. Despite the scale of misconduct, no disciplinary action has yet been taken against responsible officials.

Additionally, 10 power distribution companies imposed Rs18.64 billion in extra billing across 1,432 feeders. Documents also reveal that during FY 2023-24, consumers were billed for 904.6 million additional units.

Rs22 billion in charges were falsely categorized under line loss recovery. Audit authorities have formally demanded verification of refund claims and explanations from the involved companies. However, audit teams faced repeated resistance in accessing essential billing records.

Some relief has been provided — Rs5.29 billion was refunded to consumers due to incorrect meter readings, and PESCO processed Rs2.18 billion in multi-credit adjustments.

 

Pakistan State Time is a versatile digital news and media website that covers all latest news developments on 24/7 basis.

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