3 Electricity Distribution Companies Caught Overcharging Citizens by Rs. 1 Billion

A parliamentary panel was informed that three electricity distribution companies (Discos) allegedly overcharged consumers by more than Rs. 1 billion under the head of installation charges. The matter came up during a meeting of the sub-committee of the Public Accounts Committee (PAC), chaired by Shahida Akhtar, where audit paras relating to the Power Division and its subordinate organizations for audit years 2010-11 and 2012-13 were discussed. According to the audit briefing, Hyderabad Electric Supply Company (Hesco) overcharged Rs. 628.4 million by billing Rs. 1.23 billion for material that actually cost Rs. 610 million. Similarly, Sukkur Electric Power Company (Sepco) overcharged Rs. 267.3 million, while Lahore Electric Supply Company (Lesco) overcharged Rs. 113.4 million. Audit officials noted that Sepco billed Rs. 474.2 million against material that cost only Rs. 206.9 million. Power Division officials, however, contested the audit findings, arguing that the charges could not be termed “overcharging” as they were made within the prescribed limits. The sub-committee directed audit authorities to verify the Power Division’s claims before presenting final recommendations.