Mega scam in Pakistan: Audit Uncovers Rs244 Billion Overbilling by Eight Electricity Firms

ISLAMABAD: An audit report has unveiled a mega scam involving billions of rupees overbilling by eight power companies in Pakistan. The audit has revealed massive overbilling and financial misconduct by eight power distribution companies, resulting in the unlawful extortion of more than two hundred billion from Pakistani consumers.

According to the latest report from the Auditor General of Pakistan (AGP), these companies collectively overbilled consumers by Rs244 billion during the 2023–24 fiscal year—an apparent attempt to conceal inefficiencies, electricity theft, and line losses.

The audit identified the following companies as responsible for the malpractice:

• 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)
• Tribal Areas Electric Supply Company (Tesco)

In just one month, five of these companies overbilled 278,649 consumers, charging an extra Rs47.81 billion, the audit report states.

In total, over 900 million extra electricity units were wrongfully billed during the year, with no disciplinary action taken against the officials responsible, the report adds.

Some firms claimed to have refunded billions of rupees to customers. However, auditors said they were given no documentary evidence and have demanded complete records for verification.

One of the audit’s most alarming findings involves Qesco, accused of overbilling Rs148 billion to agricultural consumers. The report alleges that the company inflated tube well bills to mask poor performance and technical failures.

Another Rs22 billion in additional billing was allegedly carried out under the pretext of “adjusting load” to cover technical losses.

Mega Overbilling Scam

Across all eight companies, 1,432 power feeders were reportedly used to channel Rs18.64 billion in inflated charges to consumers. Audit teams said they faced repeated refusals when requesting access to relevant documentation.

Some relief was provided to a limited number of consumers. According to the report, Rs5.29 billion was refunded for incorrect meter readings, and Pesco issued Rs2.18 billion in credit adjustments.

The Auditor General’s office has formally sought explanations from the management of all eight companies, demanding accountability and transparency in their billing practices.

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