Discos Overbilled Consumers By Rs47 Billion

Power distribution companies overbilled 278,649 electricity consumers by Rs47 billion in a single month to mask electricity theft, operational inefficiencies, and line losses, audit officials informed a subcommittee of the Public Accounts Committee (PAC).

The committee was reviewing cases involving inaccurate meter readings and inflated electricity bills issued by distribution companies.

According to audit officials, Lahore Electric Supply Company (LESCO) was responsible for Rs45 billion of the total overbilling, while Peshawar Electric Supply Company (PESCO) overcharged consumers by Rs1.56 billion.

The Secretary of the Power Division told the meeting that consumers had been billed for an additional 904 million electricity units during the month. He said smart meters and transformer-based metering systems were being introduced to eliminate such practices and claimed that no overbilling complaints had been reported since their deployment.

Audit officials attributed the issue to lower-level distribution company staff responsible for meter readings, arguing that excessive discretionary authority allowed them to shift the financial burden of electricity theft and transmission losses onto paying consumers.

They added that refunds were usually issued only to customers who formally disputed their electricity bills.

Senator Afnanullah said the reported figures represented only detected cases and questioned how many consumers might be overbilled every month without the practice being uncovered.

“If a person earning only Rs20,000 a month receives an electricity bill of Rs100,000, it could push them toward electricity theft,” he said.

“People are even selling gold saved for their daughters’ weddings just to pay electricity bills,” he added.

Committee member Saleem Mandviwalla criticized the Power Division’s explanation, saying many consumers had been forced to borrow money to clear inflated electricity bills.

“It is easy to make such claims, but have you considered how consumers had to borrow money to pay these excessive bills? We have been hearing promises about smart meters for the last 20 years,” he remarked.

The LESCO Chief Executive Officer informed the committee that overbilling in the company's service area had now been reduced to zero. He also said electricity theft had significantly declined with the support of the Rangers.

He further revealed that, for the first time, one executive engineer and seven sub-divisional officers had been dismissed from service.

The subcommittee also reviewed an audit report alleging the embezzlement of Rs1.06 billion within Hyderabad Electric Supply Company (HESCO) through payments made to ghost and retired employees.

According to the audit findings, the fraud was allegedly carried out through collusion involving a drawing and disbursing officer, an executive engineer, and officials from the chief financial officer’s office.