DISCOs overbill consumers by Rs47 billion to conceal theft and line losses

Power distribution companies overbilled 278,649 consumers by Rs47 billion in a single month to conceal electricity theft, inefficiencies and line losses, audit officials told a Public Accounts Committee subcommittee.

The committee was reviewing incorrect meter readings and inflated bills issued by distribution companies.

Audit officials said Lahore Electric Supply Company (LESCO) accounted for Rs45 billion of the total overbilling, while Peshawar Electric Supply Company overcharged consumers by Rs1.56 billion.

The Power Division secretary told the meeting that consumers had been billed for 904 million excess electricity units during the month. He said smart meters and transformer-based metering systems were being installed to prevent such practices and claimed no overbilling complaints had been received since their introduction.

Audit officials blamed lower-level distribution company employees responsible for meter readings, saying excessive discretionary powers had enabled them to shift the cost of theft and line losses onto paying consumers.

They said refunds were generally issued only to customers who formally challenged their bills.

Senator Afnanullah said the reported figures covered only detected cases and questioned how many consumers may be overbilled each month without the practice being identified.

“If a person earning only Rs20,000 a month receives an electricity bill of Rs100,000, that could drive them towards electricity theft,” he said.

“People are selling gold they had saved for their daughters’ weddings just to pay electricity bills.”

Committee member Saleem Mandviwalla challenged the Power Division’s response, saying consumers had been forced to borrow money to pay inflated bills.

“It is easy for you to say this, but have you considered how consumers had to borrow money to pay these inflated bills? We have been hearing for the past 20 years that smart meters will be installed,” he said.

The Lesco chief executive officer told the committee that overbilling in the company’s service area had now been reduced to zero. He also said electricity theft had been significantly curbed with the Rangers’ assistance.

He added that one executive engineer and seven sub-divisional officers had been dismissed from service for the first time.

The subcommittee separately examined an audit finding involving the alleged embezzlement of Rs1.06 billion in the Hyderabad Electric Supply Company’s service area through payments to ghost and retired employees.

According to the audit report, the fraud involved collusion between a drawing and disbursing officer, an executive engineer and the chief financial officer’s office.