Auditor General’s 2023-24 Report Reveals Massive Losses by Eight Power
According to the Auditor General of Pakistan’s audit report for 2023-24, eight power companies have incurred losses exceeding the stipulated limit, resulting in a massive loss of national kitty.
The report highlights that the power companies’ losses exceeded the limit set by NEPRA, ranging from 8.84% to 20.16%. PESCO topped the list, causing a loss of Rs133 billion, followed by SEPCO (Rs19 billion and 17 crores), LESKO (Rs14 billion and 954 crores), FESCO (Rs6 billion and 29 crores), MEPCO (Rs3 billion and 80 crores), and GEPCO (over Rs2 billion and 87 crores).
The report attributes the excessive losses to old transmission lines and long feeders. The power companies’ inability to meet the stipulated limit has resulted in a major financial burden on the national exchequer.
READ: NEPRA confirms overbilling by all DISCOS including K-Electric
The report came at the time when the National Electric Power Regulatory Authority (NEPRA) confirmed electricity overbilling by all power distributing companies (DISCOs) including K-Electric, in April and June and sought an explanation from the companies on the matter.
According to the official notification, NEPRA decided to issue directions to all distribution companies, to adjust the bills of consumers according to the actual units consumed.
The notification stated that the companies had charged consumers more than the actual units consumed in April and June, which is a violation of NEPRA’s rules. The companies will have to adjust the bills of consumers according to the actual units consumed.
NEPRA also directed the companies not to charge late payment surcharges from consumers who could not pay their bills on time. The companies will have to adjust the bills of consumers who have paid their bills with late payment surcharges.
Electricity overbilling
Over 0.3 million power consumers moved out of the protected category and had to pay inflated electricity bills in June due to a new billing system introduced by DISCOs on the orders of the Ministry of Energy.
Consumers in the protected category receive certain protections or benefits, such as subsidized rates or exemptions from price increases.
