KARACHI: Pakistan’s power distribution companies (DISCOs) have caused a staggering loss of over Rs196 billion to the national exchequer within just one year, according to the Auditor General of Pakistan’s report for the fiscal year 2023-24. The audit reveals that eight DISCOs exceeded the loss limits set by the National Electric Power Regulatory Authority (NEPRA), with losses ranging from 8.84 percent to 20.16 percent.
Leading the list, Peshawar Electric Supply Company (PESCO) reported a loss of Rs133 billion, followed by Sukkur Electric Power Company (SEPCO) at Rs19.17 billion, Lahore Electric Supply Company (LESCO) at Rs14.95 billion, Faisalabad Electric Supply Company (FESCO) at Rs6.29 billion, Multan Electric Power Company (MEPCO) at Rs3.80 billion, and Gujranwala Electric Power Company (GEPCO) at Rs2.87 billion. These excessive losses have been attributed to outdated transmission lines and lengthy feeders, severely impacting the companies’ ability to operate within NEPRA’s stipulated limits.
This situation has placed a substantial financial burden on the national treasury. The audit report comes amid NEPRA’s confirmation of electricity overbilling by all DISCOs, including K-Electric, during April and June. NEPRA has demanded explanations from the companies and instructed them to adjust consumer bills based on actual units consumed, as the overcharging violated NEPRA’s regulations.
The issue escalated in June when over 300,000 power consumers, previously categorized as protected, received inflated electricity bills due to a new billing system introduced by DISCOs under the Ministry of Energy’s orders. These consumers, who were supposed to benefit from subsidized rates or exemptions, found themselves facing higher charges. NEPRA has also directed DISCOs not to impose late payment surcharges on consumers who could not pay their inflated bills on time, further emphasizing the need for adjustments to reflect actual consumption.
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