DISCOs overbill consumers by Rs244b

Express Tribune

7 days ago

Iesco stood on top in the wake of its plausible performance to curb losses, improve recoveries and act in line with the time frame for new connections. PHOTO: FILE
An audit has unearthed a massive overbilling scam involving eight electricity distribution companies (DISCOs), which collectively extorted over Rs244 billion from consumers in an attempt to mask inefficiencies, losses and theft in the system.
According to documents obtained by The Express Tribune, the audit report exposes serious financial irregularities in the operations of DISCOs in Islamabad, Lahore, Hyderabad, Multan, Peshawar, Quetta, Sukkur and the former tribal areas.
The report reveals that no action was taken against any officials responsible for the illegal billing, even though overbilling was carried out systematically to cover up transmission losses, power theft and poor operational performance.
In a shocking revelation, even agricultural tube wells and deceased individuals were not spared. Multan Electric Power Company (MEPCO) alone sent power bills worth Rs496 million to dead customers.
Additionally, zero-unit consumers were charged for over 1.22 million units.
The report states that in just one month, five of these companies slapped 278,649 consumers with overbilled amounts totalling Rs47.81 billion. For the entire fiscal year 2023–24, consumers were billed for an extra 904.6 million electricity units.
Despite the companies' claims that the overcharged amounts have been refunded, no documentary evidence was provided to audit authorities.
The audit observed that these companies failed to produce any records verifying refunds, raising concerns about transparency and accountability.
Among the most egregious cases was Quetta Electric Supply Company (QESCO), which overbilled agricultural consumers by over Rs148 billion during FY2023–24, purportedly to hide operational lapses.
Similarly, ten DISCOs billed an additional Rs18.64 billion across 1,432 feeders.
In total, Rs22 billion worth of overbilling was imposed solely to offset line losses, the audit reveals.
While some refunds were issued, such as Rs5.29 billion for incorrect meter readings and Rs2.18 billion in multiple credit adjustments by Peshawar Electric Supply Company (PESCO), the lack of supporting documentation continues to cast doubt on the credibility of these claims.
Audit authorities have now formally sought clarifications from all eight DISCOs, but so far, the distribution companies have failed to provide the requested records.