ISLAMABAD: All of the country’s power distribution companies, including K-Electric, have been accused of fleecing consumers through overcharging on top of backbreaking electricity tariffs, which compelled Prime Minister Shehbaz Sharif to extend the deadline for payment of bills by 10 days.

“All the distribution companies including K-Electric have been found involved in overbilling,” the National Electric Power Regulatory Autho­rity (Nepra) announc­­ed on Wednesday, quoting an inquiry report.

In a statement, the regulator said a team of its officers had conducted a detailed inquiry into complaints of overbilling during April to June 2024 period.

In a separate statement, the Ministry of Energy (power division) said the prime minister had directed a 10-day extension in deadline for payment of electricity bills. It said the 10-day extension in bill payment would be applicable for July and August bills.

“Prime Minister Shehbaz Sharif issued these instructions in view of the difficulties of the consumers,” the power division said, adding the directive had been conveyed to all power companies.

Earlier, Nepra said ex­­planations have been called from all power companies over the questions of overbilling and instructions have also been passed to compensate consumers who were already under financial burden because of unaffordable electricity rates. It said all the companies had been directed to adjust their actual bills on pro-rata basis in case of lower meter reading.

In case of consumers who are unable to pay their bills issued on pro-rata basis would not be subjected to late payment surcharge and those who had already paid their bills including late payment surcharge would be compensated through adjustment against LPS, the announcement said.

Nepra also directed the power companies to immediately replace faulty meters to avoid average or estimated billing. Moreover, all companies have also been asked to strictly abide by consumer service manual for meter reading and billing. The companies have also been asked to submit their respective compliance reports to the regulator within 30 days.

Informed sources said that Nepra was separately taking proceedings against power companies under rules that required formal show cause notices and investigations and provide opportunity to the managements of all power companies to fix responsibility on responsible staff and impose fines and other punishments. The full report is expected to be released later.

In December 2023, too, Nepra had, after detailed investigations, held all the distribution companies responsible for malpractices and over-billing in the provision of electricity.

“There is [not a] single Disco in the country who is charging bills in 100% correct manner,” the power sector regulator had concluded in its 14-page report in December.

The previous inquiry was launched after consumers from all over the country complained of “excessive, inflated, and wrong bills” charged by Discos in July and August 2023. The same episode appeared to have been repeated in April to June of this year.

This calls into question the integrity of Discos’ entire revenue streams — from meter reading to billing and penalties.

The power division had initially rejected Nepra’s report last year and appointed its own inquiry committee which upheld the findings of Nepra but exonerated managements of power companies from mala fide intent.

Responding to Nepra’s announcement, K-Electric said it had not received the regulator’s report but asked the consumers to contact its customer care centers or use other social media forums to seek assistance in case they were experiencing any issues with their billing.

Published in Dawn, August 1st, 2024