A report by the Auditor General of Pakistan has implicated eight electricity distribution companies (Discos) in a staggering financial fraud case amounting to Rs244 billion. According to reports, the Discos overcharged users to hide the true magnitude of power theft, line losses and the sheer magnitude of operational inefficiencies.

 

The Auditor General’s report indicates that Electric Supply Companies of Islamabad (Iesco), Lahore (Lesco), Hyderabad (Hesco), Multan (Mepco), Peshawar (Pesco), Quetta (Qesco), Sukkur (Sepco), and Tribal Areas Electric Supply Company (Tesco) grossly overbilled consumers from 2023-24. As per the data, consumers were overbilled for a staggering 900 million units of power.

 

Details from the audit suggest that five discos overcharged consumers by a whopping Rs47.81 in a single month. Reports reveal that 278,649 consumers faced higher bills as a result of this action by these discos.

 

As per reports, consumers in Quetta faced the brunt of the fraud as Qesco passed on a colossal Rs148 billion in extra charges to agricultural consumers. Authorities levied inflated tube well charges in the region to reduce the financial losses faced by Qesco. 

 

While the aforementioned actions detrimentally impacted consumers, no officials have been held accountable for their participation in the fraud. Audit teams have also been denied access to documents pertaining to the utilisation of 1,432 feeders by authorities to overbill consumers by Rs18.64 billion.

 

Data from reports reveals that officials passed on Rs22 billion in additional charges to consumers to hide losses resulting from technical issues, titling the extra charge as a “load adjustment”. While authorities have issued some refunds, amounting to Rs2.18 billion for Pesco and Rs5.29 billion for incorrect meter readings, it is unlikely that consumers will be compensated for the overbilling, as auditors have noted that a majority of refund claims lack necessary supporting documentation. 

 

In other recent power sector-related developments, a large drop in revenues from electricity bills was recorded, with falling usage by consumers being cited as a direct consequence of a fall in total power usage. As per the data, during the first nine months of FY 2024-25, total power usage by consumers recorded a sharp 3.6 percent decline.

 

Total power usage fell from a respectable 83,109 GWh to just 80,111 GWh during the aforementioned period. Data from reports suggests that industrial electricity usage logged a sharp fall too, falling to 21,082 GWh in FY 2024-25  from 28,830 GWh in FY 2023-24.