Audit reveals Rs244 billion overbilling fraud by eight power distribution companies

ISLAMABAD: An audit has uncovered significant overbilling and financial fraud by eight power distribution companies (Discos), resulting in the misappropriation of Rs244 billion from consumers, Geo News reported, citing a latest audit report by the Auditor General of Pakistan. 

The report names Islamabad Electric Supply Company (Iesco), Lahore (Lesco), Hyderabad (Hesco), Multan (Mepco), Peshawar (Pesco), Quetta (Qesco), Sukkur (Sepco), and Tribal Areas Electric Supply Company (Tesco) as the key offenders. These companies overcharged consumers to conceal inefficiencies, line losses, and electricity theft. 

The audit reveals that five of these companies overbilled 278,649 consumers by Rs47.81 billion in just one month. Over the 2023–24 fiscal year, more than 900 million extra units were billed to customers, but no action has been taken against the officials involved.

In some instances, companies claimed to have refunded billions of rupees, but the audit found no evidence to verify these claims and demanded relevant records. Another disturbing finding showed that Rs22 billion in overbilling was carried out under the guise of “adjusting load” to cover technical losses.

Qesco is highlighted as the worst offender, having overbilled agricultural consumers by Rs148 billion. The company reportedly inflated tube well bills to cover up poor performance.

Additionally, 1,432 feeders across the companies were used to issue inflated bills amounting to Rs18.64 billion. Despite repeated requests, relevant records were not provided to the audit teams.

While some consumers did receive refunds, including Rs5.29 billion for incorrect meter readings and Rs2.18 billion in credit adjustments from Pesco, audit officials have demanded explanations from all eight power distribution companies.