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Power Companies Overbilled Consumers by Rs. 244 Billion to Hide Losses

Power Companies Overbilled Consumers by Rs. 244 Billion to Hide Losses

In a shocking revelation, eight electricity distribution companies across Pakistan collectively overcharged consumers by a staggering Rs. 244 billion during the fiscal year 2023–24. The discovery is based on an extensive audit affidavit by the Auditor General of Pakistan (AGP), which charges the companies with overcharging their invoices so as to cover up institutional waste, line losses, and rampant theft of electricity. The power distribution companies named in the report include IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO. According to a national daily that reviewed the audit, the overbilling appears to be a deliberate attempt to cover up operational failures and avoid accountability.

Single-Month Surge: Rs. 47.81 Billion in Overbilling

The audit uncovered that five of these companies charged 278,649 consumers an excess of Rs. 47.81 billion in just one month. Throughout the fiscal year, more than 900 million extra electricity units were wrongly billed, placing an immense financial burden on households and businesses alike. Despite the scale of malpractice, the report highlights that no disciplinary measures were taken against the officials involved in the overbilling scandal. Power Companies Overbilled Consumers by Rs. 244 Billion to Hide Losses

QESCO Tops the List of Offenders

Among the eight companies, Quetta Electric Supply Company (QESCO) emerged as the worst offender, particularly targeting agricultural consumers. The audit reveals that QESCO billed Rs. 148 billion in excess, mainly by manipulating tube well consumption charges. These charges were artificially inflated far beyond actual usage, placing immense strain on farmers who already struggle with high input costs.

Load Adjustments and Feeder Manipulation

In addition to direct overbilling, the audit found that Rs. 22 billion were unfairly billed under the pretense of “load adjustment,” a term often used to obscure technical losses in the grid. Furthermore, 1,432 power feeders were involved in issuing inflated bills totaling Rs. 18.64 billion, with audit teams reportedly denied access to essential records linked to these transactions—raising serious transparency concerns.

Partial Refunds Issued—But Documentation Lacking

Some power companies initiated partial refunds. PESCO issued Rs. 2.18 billion in adjustments, while Rs. 5.29 billion were returned to consumers due to incorrect meter readings. However, the audit report criticized these efforts, stating that most refund claims lacked proper documentation, making it difficult to verify whether consumers were fairly compensated.

Silence from the Top

What’s particularly alarming is the lack of accountability across the board. Despite clear evidence of financial malpractice, no substantial action has been taken to hold the officials or companies responsible. The absence of consequences raises questions about governance and the oversight of public utilities in Pakistan.

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