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In a scathing report released on Monday, the National Electric Power Regulatory Authority (Nepra) uncovered a “controversial power theft drive” orchestrated by power distribution companies (Discos), defrauding millions of consumers of billions of rupees through excessive billing and illicit practices.
Key Findings:
- Invalid Billing Practices:
- Discos engaged in intentional malpractices, manipulating billing cycles of over 30 days to overcharge consumers and conceal inefficiencies.
- Domestic consumers were excessively charged during July and August 2023, affecting over 5.7 million consumers in Mepco, 1.2 million in Gepco, 800,000 in Fesco, and substantial numbers in Lesco and Hesco.
- Slabs, statuses, and lifeline designations were altered for thousands of consumers.
- Defective Meters:
- Thousands of consumers were charged for more than two months due to the non-replacement of defective meters, some neglected for over three years.
- Over 400,000 consumers were overcharged during July to August 2023 due to incorrectly declared defective meters.
- Meter Readings Discrepancies:
- Significant discrepancies were found in metering and billing processes of all Discos, including invalid snapshots, mismatches, and double charging during defective meter periods.
- Detection Billing Issues:
- Detection bills charged by Discos were deemed fake and frivolous, leading to low recovery ratios in some Discos.
- Recovery ratios in Hesco and Sepco were alarmingly low at 5% and 6%, while others like Iesco, Gepco, and Fesco had higher averages of 94%, 95%, and 98% respectively.
- Incorrectly charged detection bills resulted in decreased recovery and increased AT&C losses.
Regulator’s Conclusion and Recommendations:
- Most Discos violated relevant Consumer Service Manual (CSM) clauses and tariff terms, leading to overbilling and increased losses.
- Discos were found to be charging excessive and fake detection bills, violating Nepra Act and other applicable regulations.
- The report recommends legal proceedings against all Discos for violations, immediate replacement of defective meters, revision of inflated bills, and actions against officials involved in illegal practices.
- Suggestions include procurement of Handheld Units (HHU) for transparent meter readings, scrutiny of unrecovered detection bills for authenticity and recovery, and strict adherence to CSM provisions in meter readings and replacement of defective meters.
The findings expose a widespread and systematic effort by Discos to engage in illegal practices, adversely affecting consumers and undermining the integrity of the power distribution system. Nepra urges swift and decisive actions to rectify the situation and ensure accountability within the power sector.
