The National Electric Power Regulatory Authority (NEPRA) on Monday decided to initiate legal action against all power distribution companies (DISCOs) of the country after an inquiry determined they had overcharged millions of consumers during the months of July and August.
In a statement, NEPRA said it was initiating legal proceedings against all DISCOs, including K-Electric, in accordance with NEPRA Fine Regulations, 2021 for their violation of provisions of the NEPRA Act, the Consumer Service Manual, and tariff terms and conditions.
According to NEPRA, the inquiry was launched after it received complaints from across Pakistan regarding excessive, inflated, and wrong bills to electricity consumers during July and August. The power regulator said it had conducted detailed hearings that found many bills did not contain required photos of meter readings, while others had been charged in excess of the 30-day billing cycle, resulting in overcharging of upper slabs that altered consumer categories from “protected to unprotected.” Protected consumers are those that consume less than 200 kWh per month consistently for six months.
Additionally, said NEPRA, various distribution companies were charging amounts wherein the photographed meter readings did not match the values recorded on the consumers’ bills. Subsequently, it said, a committed was tasked with probing the matter, finding 5.7 million Multan Electric Power Company (MEPCO) consumers were charged for over 30 days of the billing cycle in the month of July, while 1.2 million consumers of the Gujranwala Electric Power Company (GEPCO) were overcharged in August.
Similarly, it said, the Faisalabad Electric Supply Company (FESCO) had overcharged over 800,000 consumers; Lahore Electric Supply Company (LESCO) around 700,000 in both July and August; and the Hyderabad Electric Supply Company (HESCO) more than 500,000 in July. For most of the affected consumers, it said, this method of recording more than the 30-day billing cycle had shifted them to higher slabs; changed the status of consumers from protected to unprotected; and changed the status of lifeline consumers to non-lifeline ones.
“It is further noted with grave concern that during the months of July and … August, thousands of consumers were served electricity bills having invalid snaps, in which MEPCO, LESCO, QESCO, and SEPCO are major contributors,” read the report, emphasizing that the notified tariff terms and conditions required a billing period to be 30 days or less from the date of the last meter reading. However, it said, various DISCOs had billed for 30-40 days, with thousands charged for more than 40 days.
The report attributed this practice to the overbilling in July and August that triggered nationwide protests. The worst contributor, it said, was MEPCO, followed by GEPCO, FESCO, LESCO, and HESCO. Overall though, it said, all DISCOs were responsible for the unjustified exercise. “There is [not a] single DISCO in the country who is charging bills in 100% correct manner,” it said.
NEPRA found 492,478 defective meters needed to be replaced by the end of August 2023, with many having remained defective from two months to more than three years. Under the law, such meters must be replaced within two billing cycles. The respective DISCOs, instead of replacing meters, charged users on an average basis from the period the meter was declared defective.
The “fake and frivolous” detection bills sent by DISCOs to consumers, it said, had led to low recoveries. A detection bill is sent in addition to the usual consumption bill if a discrepancy is uncovered in the meter or when theft or other unauthorized use of electricity is detected. According to the report, the recovery ratio of detection bills for HESCO and SEPCO stood at a mere 5 and 6 percent, respectively.
The regulator has recommended legal action against all DISCOs, including KE, for violating the regulations. “DISCOs may be directed to … revision of inflated bills on pro-rata basis. DISCOs shall correct the bills within one billing cycle and issue revised bills to the affected consumers … and submit compliance report within thirty days,” it added.