The National Electric Power Regulatory Authority (NEPRA) on Wednesday revealed that all power distribution companies (DISCOs), including K-Electric had been found involved in overbilling of consumers, who are already struggling under hefty electricity bills.
In light of NEPRA’s report, the Ministry of Energy (Power Division) separately announced Prime Minister Shehbaz Sharif had decided on a 10-day extension for the payment of electricity bills for July and August. “Prime Minister Shehbaz Sharif issued these instructions in view of the difficulties of the consumers,” read the statement, adding the directive had been conveyed to all DISCOs.
“All the distribution companies including K-Electric have been found involved in overbilling,” read a statement issued by NEPRA, quoting an inquiry report. It said a team of its officers had conducted a detailed inquiry into consumer complaints of overbilling during the April-June period.
It said explanations had been sought from all DISCOs regarding the overbilling and instructions issued to compensate impacted consumers. It said all companies were directed to adjust their actual bills on pro-rata basis in case of lower meter reading. Anyone unable to pay their bills on time, it said, would not be subjected to late payment surcharge while those who had already paid their bills would be compensated through adjustments.
NEPRA also issued instructions to all DISCOs to replace all faulty meters to avoid average or estimated billing.
This is the second time within 12 months that NEPRA has highlighted overbilling by DISCOs. In December 2023, the regulator had issued a report that found all DISCOs were overbilling and involved in other malpractices. “There is [not a] single DISCO in the country who is charging bills in 100% correct manner,” read the report, which was triggered by customer complaints of overbilling during the July-August 2023 period.
Following the issuance of the report, the Power Division had conducted its own inquiry, validating NEPRA’s findings but exonerating managements of power companies from mala fide intent.
Public hearing
Separately, during a public hearing on charging consumers an additional Rs. 2.63/unit in their August bills under fuel adjustment charges for June, the Central Power Purchasing Agency (CPPA) informed NEPRA that consumption in June was 2 percent less than the same period a year earlier. It noted a “significant” increase in power production using LNG during this period, adding cost of generation from LNG was Rs. 26.32/unit; imported coal Rs. 15.53/unit; and furnace oil Rs. 31.61/unit.
NEPRA authorities observed that industries were shifting from gas to solar and questioned the “contradictory” policies of the federal and Punjab governments. They also considered the matter of Independent Power Producers (IPPs) and urged the Power Division to oversee future talks with the entities to see if the burden on consumers could be reduced.
The NEPRA officials noted that IPP contracts could be revisited, but stressed that this could not be done in a unilateral manner. They also sought to clarify that they did not receive any free electricity units, as has been alleged during various public demonstrations against high electricity bills.