ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has decided to pursue legal action against Distribution Companies (DISCOs), including K-Electric, under NEPRA Fine Regulations, 2021, for alleged violations of the NEPRA Act. The move comes as NEPRA accuses DISCOs of engaging in massive overbilling to conceal inefficiencies.
NEPRA took serious note of complaints from across Pakistan regarding excessive, inflated, and incorrect bills issued by DISCOs to consumers during July and August 2023. The Authority plans to conduct a hearing involving all distribution companies and has invited the Ministry of Energy (Power Division) to participate in the proceedings.
The regulator expressed concern that DISCOs deliberately engage in malpractices to hide inefficiencies, causing financial strain for thousands of consumers. NEPRA found that most DISCOs failed to adhere to tariff terms and conditions approved by the Authority and neglected the mechanism of percentage checking as outlined in the Consumer Service Manual.
NEPRA’s report highlighted the adverse impact of overbilling on domestic and low electricity users, leading to payment difficulties, DISCOs’ reduced recovery, increased AT&C losses, and subsequent load shedding.
The Authority recommends various actions against DISCOs and K-Electric, including legal proceedings under NEPRA Fine Regulations, immediate replacement of defective meters, and coordination with Power Information Technology Company (PITC) to review inflated bills since June 2023. DISCOs are also urged to obtain data from PITC for revising bills on a pro-rata basis and initiate proceedings against officials for violating the Consumer Service Manual.
Additionally, NEPRA directs DISCOs to procure Handheld Units (HHU) for transparent meter readings and scrutinize unrecovered detection bills. DISCOs are instructed to follow the Consumer Service Manual diligently, educate their officers about relevant regulations, and ensure compliance with NEPRA Act, tariff terms, and conditions.
