Nepra Fines 3 Electricity Companies Rs. 100 Million for Overbilling

The National Electric Power Regulatory Authority (Nepra) has imposed fines totaling Rs. 100 million on three state-run power distribution companies, Gepco, Fesco, and Qesco, for overbilling consumers, inflating losses, and failing to improve recoveries during the fiscal year 2023-24. Nepra’s investigation found that Gujranwala Electric Power Company (Gepco) manipulated meter readings to understate its transmission and distribution (T&D) losses, which rose to 11.48 percent, exceeding the regulator’s target of 9 percent. Gepco admitted to overbilling practices that “affected millions of consumers” and violated both the Nepra Act and the Consumer Service Manual. The company was fined Rs. 50 million and given 15 days to pay. Separately, Gepco was also fined Rs. 100,000 per day for ongoing non-compliance with Nepra’s earlier order requiring 100 percent earthing of HT/LT structures within its network. Faisalabad Electric Supply Company (Fesco) received a penalty of Rs. 10 million for deliberate overbilling and concealing operational inefficiencies. Fesco also failed to reduce T&D losses in FY2023-24. Nepra dismissed Fesco’s claims that reduced industrial demand led to higher losses, stating the company “manipulated bills to conceal inefficiencies” and failed to provide adequate justification. Quetta Electric Supply Company (Qesco) was fined Rs. 40 million for persistent inefficiency, poor recoveries, and failure to curb T&D losses. Qesco attributed its weak performance to non-payment of agricultural subsidies and law-and-order issues in Balochistan, but Nepra rejected these explanations as “unconvincing and repetitive.” The regulator noted that Qesco had long been aware of operational challenges in remote areas but “failed to plan investments or improve recovery strategies despite repeated support through federal programs.” Nepra has directed all three utilities to deposit the fines within 15 days, warning that non-payment could result in recovery through arrears of land revenue and further legal action.