ISLAMABAD: An investigation by the National Electric Power Regulatory Authority (Nepra) has revealed that millions of consumers across the country were subjected to ‘inflated bills’ during the April-June period as they lost their entitlement to subsidised rates and slab benefits.

A report based on information and data provided by Power Information Technology Company (PITC) — a subsidiary of the power division — revealed that the scope of pro rata billing had been expanded beyond its original intent — instead of solely revising bills for periods exceeding 30 days.

All power companies, including Karachi Electric, have started applying pro rata adjustments to bills for periods fewer than 30 days. This has resulted in a “significant number of consumers being reclassified from “protected” to unprotected categories, from lifeline to non-lifeline, and from lower to higher tariff slabs. which resulted in inflated bills”, Nepra observed.

According to the report, pro rata adjustments were made for readings taken for periods under 30 days and subsequently scaled up to 30-31 days, with projected units for fewer days, using pro rata calculations. As a result, many consumers were impacted by pro rata billing for periods shorter than 30 days.

Many lifeline consumers pushed out of monthly ceiling, paying almost double rates for electricity

Many users were pro-rated for three months running — April, May and June — contrary to the meter reading schedule. This is a violation of the Consumer Service Manual, the report found.

It held that ex-Wapda distribution companies (Discos) and KE had not replaced defective meters within two months, as required by Consumer Service Manual, which resulted in average billing. This in turn led to inflated bills.

Moreover, the power companies “in significant cases, recorded readings much earlier than the scheduled date and used a pro-rata calculation to adjust the readings during April to June”.

This resulted in readings that were higher than what was actually recorded on the meter. Over and above that, bills issued by power companies over three months — April-June — had a serious discrepancy that the snap date did not match with the schedule data.

In the process, the investigation report noted, ‘lifeline’ consumers (using up to 50 units per month) were pushed out of their monthly ceiling and had to pay almost double the rates, Rs7.74 per unit instead of Rs3.95. In these cases, meter reading was done (recorded) for 27 days, which should have been 45-46 units, but this was pro-rated to 30 days, resulting in consumers slipping to the above 50-unit category, thus out of lifeline status and attracting twice the per unit rate.

Likewise, lifeline consumers of 51-100 unit per month were billed at the rate of Rs10.06 per unit instead of Rs7.74 per as they were billed on estimated basis for 30 days on the basis of 27 or 26 days reading.

Similarly, consumers in ‘protected category’ of 200 monthly units for subsidised rate were also disadvantaged and their pro-rata billing for 30 days instead of actual reading attracted per unit rate of Rs27.14 instead of their approved rate of Rs10.06 per unit — almost three times higher rate.

In the same pattern, consumers in 201-300 units per month in unprotected category were charged at Rs32.03 per unit instead of their entitled rate of Rs27.14 per unit.

Therefore, to protect the interest of consumers, the power companies have been directed that the “consumers charged on pro rata basis during April 2024 to June 2024 for readings less than defined billing months be adjusted with actual units so recorded”.

However, the units of remaining days which have been charged on pro-rata basis be adjusted on rates as determined by actual meter reading units, but the consumer category will remain the same, the regulator ordered.

Also, the regulator ordered that consumers charged on pro-rata basis for readings less than the defined billing month who could not pay the bills shall not be levied Late Payment Surcharge (LPS) and the consumers who paid the bills with LPS should be compensated. The bill for April-June period should be corrected within 30 days, the regulator said.

Replacement of defective meters

It directed power companies to replace defective meters immediately to avoid average billing and to follow the provisions of Consumer Service Manual for meter readings, printing of accurate snaps, percentage checking to ensure accuracy.

The companies would not be given compensation against any loss they may face in the entire process.

Published in Dawn, August 2nd, 2024