AGP directs HESCO to remove meters of three-month defaulters

The Auditor General of Pakistan has directed the Hyderabad Electric Supply Company (HESCO) to remove electricity meters of consumers who have defaulted on three consecutive monthly bills, in line with regulations set by the National Electric Power Regulatory Authority (NEPRA).

The audit of HESCO for the financial year 2024–25 found that 400,420 consumers across different tariff categories had defaulted on payments amounting to Rs 148.3 billion as of June 30, 2025. Although EROs were issued for recovery and disconnection, they were not executed.

Under NEPRA’s Consumer Service Manual, a distribution company is required to issue an Equipment Removal Order (ERO) if a consumer fails to clear the third month’s bill along with arrears from the previous two months within the stipulated due date. The manual mandates removal of the metering installation and assignment of a permanently disconnected status. Electricity supply can only be restored after full settlement of dues and completion of formalities under the reconnection policy.

When the matter was raised in November 2025, HESCO management informed auditors that recoveries of Rs 398.6 million had been made between July and December 2025. It stated that special recovery campaigns were underway and disconnection notices had been issued, but confirmed that the EROs remained pending.

The audit observed that failure to implement removal orders indicated weak enforcement and inadequate monitoring of defaulting consumers. It warned that leaving installations in place could result in continued unauthorised consumption, potential theft of electricity and equipment, and further buildup of arrears.

In a meeting held on January 16, 2026, the Departmental Accounts Committee directed HESCO management to submit a revised response supported by documentary evidence.

The audit has recommended immediate execution of all pending EROs, strengthening of recovery oversight mechanisms, and fixing responsibility on officials concerned to prevent recurrence of such lapses.