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Electricity Distribution Companies Fail to Recover Rs. 877 Billion from Bill Defaulters

5 min read
Legal Expert
Electricity Distribution Companies Fail to Recover Rs. 877 Billion from Bill Defaulters
The Public Accounts Committee (PAC) has revealed that electricity distribution companies (DISCOs) have failed to recover dues exceeding Rs. 877 billion from defaulters, with Balochistan’s electricity consumers alone owing over Rs. 600 billion. The issue was discussed in a PAC meeting where the audit report of the Power Division for 2023-24 was reviewed. The Secretary Power informed the committee that Rs. 162 billion has been recovered so far, but senators weren’t happy with the full scale of the unrecovered dues, particularly from Quetta Electric Supply Company (QESCO). Senator Afnanullah Khan pointed out that Quetta alone accounts for Rs. 603 billion in unpaid dues. One committee member highlighted the deteriorating law and order situation in Balochistan and lamented that recovery had become nearly impossible. The committee directed the Power Division to submit a list of the top 300 defaulters. It was also revealed that the Balochistan government itself is among the defaulters. One committee member criticized the power sector’s failure and termed it as a governance issue. Secretary Power Division assured the committee that he would personally oversee the recovery process. The Auditor General was also tasked with confirming the Rs. 162 billion recovery by the next day. PAC also recommended revoking the privileges of CEOs of DISCOs with poor recovery rates and summoned the CEOs of companies that have reported zero recoveries for two years. Members raised objections to the government’s collection methods. They particularly didn’t like the use of rangers for recovery efforts in Hyderabad Electric Supply Company (HESCO) while large industrial defaulters remain unchallenged. Further, the committee has sought a monthly recovery report and details of actions taken against officials involved in corruption and overbilling. It was revealed that six DISCOs were responsible for Rs. 1.5 billion in corruption, while consumers were overcharged by more than Rs. 21 billion due to incorrect meter readings and departmental errors. The committee also requested details on the cost of free electricity provided to DISCOs, which will be reviewed in the next meeting.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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