Power firms overcharge Rs244bn to cover losses

An official audit has exposed massive overbilling and financial fraud by eight power distribution companies, draining hundreds of billions from unsuspecting consumers already crushed by inflation and low incomes and high tariffs.

According to the latest report by the Auditor General of Pakistan, eight power distribution companies overbilled consumers by a massive Rs244 billion during the financial year 2023–24. This overbilling was reportedly done to hide inefficiencies, line losses, and electricity theft. The audit report names Iesco, Lesco, Hesco, Mepco, Pesco, Qesco, Sepco, and Tesco among the companies involved. It states that five of these companies charged 278,649 customers an extra Rs47.81 billion in just one month.

The audit also found that more than 900 million additional electricity units were wrongly billed to customers throughout the year. No action was taken against the officials responsible for these irregularities. In some cases, the companies claimed they had refunded large amounts to the public, but they failed to provide proper records. Audit teams have asked for complete documentation to verify these refund claims.

The report also revealed that Rs22 billion was overcharged under the term “adjusting load,” which was used to cover technical losses in the system. Qesco was marked as the worst-performing company, with Rs148 billion in overbilling to agricultural consumers. It is alleged that the company raised tube well bills to hide its inefficiency.

The report further stated that 1432 electricity feeders were used to generate inflated bills, amounting to Rs18.64 billion. Despite repeated requests, the companies did not share the required documents with audit teams. Some relief was given to consumers, such as Rs5.29 billion refunded due to wrong meter readings and Rs2.18 billion credited by Pesco. Audit officials have now asked all eight companies to explain their actions and provide the needed records.