The latest report from the Auditor General of Pakistan revealed that power distribution companies have been involved in widespread overbilling and financial fraud, resulting in a staggering loss of Rs244 billion to consumers.
The audit is focusing on eight companies: 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), and Tribal Areas Electric Supply Company (Tesco). In light of rising inflation and high tariffs, this fraudulent behaviour places an additional burden on low-income households.
The report reveals systematic overbilling to hide operational failures. Auditors found that five companies overbilled 278,649 consumers by Rs 47.81 billion in just one month. During the 2023-24 financial year, these companies billed over 900 million extra units without justification.
Some companies claimed refunds of billions for errors, but provided no evidence to support their claims. Auditors demanded verification records to confirm these claims. Qesco emerged as the worst offender, overbilling agricultural consumers by Rs148 billion through inflated tube well bills. This practice hid poor performance metrics. Feeders across the companies facilitated Rs18.64 billion in inflated bills, with records withheld from auditors despite requests.
Consumers received partial refunds, including Rs 5.29 billion for incorrect meter readings and Rs 2.18 billion in credit adjustments from Pesco. However, auditors noted a lack of transparency in these processes. Rs22 billion in extra billing occurred under the guise of “adjusting load” to cover technical losses, further eroding trust. No action has been taken against the responsible officials, according to the report. Companies failed to address inefficiencies, such as theft and losses, instead passing the costs on to consumers.
The audit recommends strict penalties and recovery measures to prevent recurrence and restore financial discipline. This fraud exacerbates economic pressures on households already facing high tariffs. It undermines trust in the power sector and highlights the need for regulatory reforms.
Experts call for stronger oversight, transparent billing, and anti-corruption measures to protect consumers. The government must act swiftly to recover funds and hold companies accountable for their actions.
Pakistan Power Companies Overbilling Summary
| Company | Key Irregularity | Amount (Rs Billion) |
|---|---|---|
| Qesco | Overbilling agricultural consumers | 148 |
| All 8 Companies | Inflated billing via feeders | 18.64 |
| 5 Companies | Overbilling 278,649 consumers (one month) | 47.81 |
| Various | Load adjustment overbilling | 22 |
Data source: Auditor General of Pakistan report.
