Power Companies Overbilled Consumers by Rs. 8 Billion

A meeting of the Public Accounts Committee (PAC), chaired by Shahida Akhtar Ali, reviewed audit objections related to the Power Division for the fiscal year 2022-23. Audit officials revealed that power distribution companies (DISCOs) collected over Rs. 8 billion in excess revenue through overbilling, charging consumers for more units than they actually used. The audit found that more than 1,000 feeders were involved in this overbilling practice. During the session, it was agreed by consensus that, until PAC Chairman Junaid Akbar returns, the committee’s leadership will rotate among all parties, with a new chairperson presiding over each meeting. This proposal for rotating the chair was put forward by MQM’s Aminul Haque. While reviewing the Power Division’s 2023-24 audit report, officials pointed out total financial irregularities of Rs. 8.727 billion. They also reported that recoveries exceeding Rs. 9.34 billion had already been made. The audit further revealed that four DISCOs had issued unauthorized refunds totaling Rs. 9.14 billion to consumers. According to the report, 293,572 consumers received slab or tariff relief between 2018 and 2023, even though such relief was only meant for disconnected users. The Power Division Secretary admitted that much of the required documentation was not provided during the audit but said all DISCOs have now been instructed to ensure timely record submission in the future. PAC member Syed Hussain Tariq questioned what action had been taken against officers responsible for wrong billing and how much had been recovered. The CEO of LESCO stated that an internal audit report had been submitted on the matter. The Auditor General noted that the relief was given to active consumers, whereas it was only authorized for disconnected users, and also pointed out that meter readers often do not visit for readings. The Power Division Secretary said that now, photos of meter readings are printed on all DISCO bills, and consumers can upload their own readings via a mobile app. Syed Hussain Tariq pressed for clarity on the Rs. 9 billion in question, asking what action would be taken. The Power Division Secretary requested more time for PAC to verify the records. Audit officials said LESCO provided the largest amount of unauthorized refunds, totaling Rs. 7.5 billion. The CEO of MEPCO admitted he had not brought records of action taken against 43 employees involved in irregularities, prompting PAC’s displeasure and a decision to defer the related audit objection. PAC instructed the Power Division Secretary to complete record verification promptly. PESCO’s CEO highlighted a severe shortage of meter readers, noting that in difficult areas like Swat, readings are sometimes taken only every two months. The Power Division Secretary said recruitment is underway across DISCOs, and several companies have started outsourcing meter reading. He added that PESCO has 24,000 sanctioned posts but only 10,000 active employees. PAC referred the overbilling issue to a subcommittee for further review.