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Inquiry Committee Reveals Overbilling Scandal in Power Sector

Overbilling

ISLAMABAD: An independent four-member inquiry committee has substantiated allegations of systematic overbilling by power distribution companies (Discos) across Pakistan, as accused by the power regulator.

Led by former federal secretary Irfan Ali, the committee, which includes members associated with the Power Division, presented a 37-page report. While confirming the overcharging accusations, the committee absolved Discos of deliberate wrongdoing, attributing inefficiencies to the former PDM-led coalition government’s decision-making.

The committee also criticized the National Electric Power Regulatory Authority (Nepra) for prematurely publicizing “extreme allegations” without prior questioning. It acknowledged Nepra’s intent but suggested that the regulator should have raised concerns earlier.

The inquiry involved consultations with stakeholders, including Discos, Nepra, and technical entities such as Power Information Technology Company (PITC) and Power Planning & Monitoring Company (PPMC).

The report addressed Nepra’s findings regarding meter readings, emphasizing transparency and accuracy to avoid pecuniary losses for consumers. It noted a recurring pattern of delayed readings, impacting billing accuracy.

The committee disagreed with Nepra’s claims of deliberate overbilling, citing inefficiency as the primary issue.

While acknowledging some financial gains for Discos, the committee argued that the scale of fraud should have been more significant if deliberate malpractice was involved. It highlighted a shortage of meter reading staff and other logistical issues as contributing factors.

The committee recommended performance evaluations for Disco boards and managements, emphasizing key performance indicators related to loss reduction and consumer satisfaction.

Overall, the report provides insights into the complex dynamics contributing to the overbilling issue in Pakistan’s power sector.

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