Rs244B Overbilling Scandal Hits Pakistan’s Power Companies

Massive Overbilling Uncovered: Pakistani Power Companies Charged Consumers Rs244 Billion Illegally

ISLAMABAD — A financial audit has revealed that eight electricity distribution companies (DISCOs) across Pakistan collectively overbilled consumers by a staggering Rs244 billion, allegedly to conceal line losses, electricity theft, and inefficiencies in operations.

According to official audit documents, the companies involved include IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO. The malpractice affected all consumer categories — including domestic users, agricultural tube wells, and even deceased individuals.

One particularly shocking case shows Multan Electric Power Company (MEPCO) issuing bills worth Rs49.6 million to consumers who had already passed away. In a single month alone, five DISCOs overbilled 278,649 consumers, totaling Rs47.81 billion — yet no disciplinary action has been taken against officials responsible.

The audit further reveals that 904.6 million extra units were charged to consumers in FY 2023–24. Authorities reported that Rs22 billion in overbilling was justified by DISCOs under “extra load” charges to cover line losses, while Rs18.64 billion in excessive billing was linked to 1,432 power feeders.

QESCO was cited for the most significant overbilling — more than Rs148 billion — primarily targeting agricultural consumers, allegedly to mask performance failures.

Despite repeated audit requests, billing records were not shared by the companies. However, some consumer relief has been recorded: Rs5.29 billion was refunded due to overbilling based on incorrect meter readings, and PESCO issued Rs2.18 billion in multi-credit adjustments to affected users.

Audit authorities have now formally sought written explanations from the eight DISCOs involved. The findings also coincide with Prime Minister Shehbaz Sharif’s recent directive to expedite the privatization of DISCOs to reform Pakistan’s ailing power sector.