PM extends bill payment deadline as all power companies accused of overbilling

Nepra seeks explanations from all Discos regarding overbilling and directs them to compensate consumers. 

The National Electric Power Regulatory Authority (Nepra) announced on Wednesday that an inquiry had found all distribution companies (Discos) including K-Electric involved in overbilling, causing additional burden on the consumers who are already bearing the brunt of high tariffs. 

A team of Nepra officers conducted a detailed investigation into overbilling complaints from April to June 2024.

In response to these findings, the Ministry of Energy (Power Division) stated that Prime Minister Shehbaz Sharif has directed a 10-day extension for the payment of electricity bills, applicable for July and August bills. This decision was made to alleviate consumer difficulties.

Nepra’s statement also noted that explanations have been sought from all power companies regarding overbilling, and instructions have been given to compensate consumers. 

Companies have been directed to adjust actual bills on a pro-rata basis for lower meter readings. Consumers unable to pay pro-rata bills will not face late payment surcharges, and those who have already paid including late surcharges will be compensated through adjustments.

Furthermore, Nepra directed the immediate replacement of faulty meters to avoid estimated billing and emphasized strict adherence to the consumer service manual for meter reading and billing. Compliance reports from all companies are expected within 30 days.

Sources indicate that Nepra is separately conducting proceedings against power companies, including formal show cause notices and investigations to fix responsibility and impose penalties. A full report on the inquiry is expected to be released later.

In December 2023, Nepra’s investigations had already held all distribution companies responsible for overbilling and malpractices. The inquiry followed widespread complaints of excessive and incorrect billing in July and August 2023, a situation that appears to have been repeated from April to June 2024.

The power division had initially rejected Nepra’s findings last year but later appointed its own inquiry committee, which upheld Nepra’s conclusions while absolving the managements of power companies of intentional wrongdoing.

Responding to Nepra’s latest announcement, K-Electric stated it had not yet received the regulator’s report but urged consumers to contact its customer care centers or use social media for assistance with billing issues.

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