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Islamabad, July 22, 2025 — In a damning revelation, eight electricity distribution companies (Discos) across Pakistan overbilled consumers by a staggering Rs. 244 billion during the fiscal year 2023–24, according to an audit report released by the Auditor General of Pakistan (AGP). The report accuses these companies of manipulating billing practices to conceal line losses, theft, and operational inefficiencies.
Eight Discos Implicated in Overbilling Scheme
The companies identified in the audit include:
- Islamabad Electric Supply Company (IESCO)
- Lahore Electric Supply Company (LESCO)
- Hyderabad Electric Supply Company (HESCO)
- Multan Electric Power Company (MEPCO)
- Peshawar Electric Supply Company (PESCO)
- Quetta Electric Supply Company (QESCO)
- Sukkur Electric Power Company (SEPCO)
- Tribal Electric Supply Company (TESCO)
These Discos allegedly overcharged consumers by issuing bills for excess electricity units, bypassing accurate meter readings and using inflated adjustments to mask real losses.
QESCO Identified as the Worst Offender
According to the report, QESCO was responsible for the largest portion of the overbilling, having charged agricultural consumers Rs. 148 billion through inflated tube well charges. This manipulation primarily targeted rural users who rely heavily on electricity for irrigation and farming.
One Month Alone Saw Rs. 47.81 Billion in Overbilling
The audit found that in just one month, five of the Discos overbilled 278,649 consumers, collecting a combined Rs. 47.81 billion in excess payments. Over the entire fiscal year, consumers were charged for over 900 million extra electricity units, raising serious concerns about transparency and consumer rights.
Load Adjustment and Inflated Billing on 1,400+ Feeders
Further investigation revealed that Discos used “load adjustments” to account for losses—an approach that added Rs. 22 billion to customer bills. Additionally, 1,432 feeders were found to have issued inflated bills worth Rs. 18.64 billion.
Disturbingly, audit teams were denied access to records related to these feeders, raising red flags about internal accountability and transparency.
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Refunds Issued, But Largely Undocumented
While some corrective action was taken, auditors noted that it was limited and often lacked documentation. Examples include:
- Rs. 5.29 billion refunded due to incorrect meter readings
- Rs. 2.18 billion in adjustments provided by PESCO
However, the audit report emphasized that most refund claims were not backed by proper records, raising questions about the integrity and effectiveness of the reimbursement process.
No Disciplinary Action Taken Against Responsible Officials
Perhaps most troubling is the report’s finding that no disciplinary action was taken against any of the officials involved in the overbilling. The AGP criticized the lack of accountability, suggesting that systemic mismanagement is being tolerated at multiple levels of the power distribution hierarchy.
Implications for Energy Sector Reform and Consumer Trust
This revelation is likely to fuel growing public outrage over Pakistan’s energy crisis and high electricity tariffs. With millions already struggling to pay inflated power bills, the audit underscores the urgent need for structural reforms in the energy sector, particularly in terms of billing transparency, operational audits, and consumer protection.
Experts believe the overbilling scandal will further erode trust between power companies and the public unless swift and decisive action is taken.
Next Steps and Government Response Awaited
As of now, the government has not issued an official response to the AGP’s findings. Lawmakers and civil society groups are expected to raise the issue in Parliament and demand investigations, regulatory action, and consumer reimbursements.
There are also calls for empowering the National Electric Power Regulatory Authority (NEPRA) and other oversight bodies to independently audit billing practices and enforce penalties on delinquent Discos.
