Power Companies Overbilled Consumers by Rs8 Billion – Auditors Reveal Massive Billing Irregularities in Pakistan (2025 Report)

Electricity consumers in Pakistan have once again been hit by a major controversy as auditors revealed that power distribution companies (DISCOs) overbilled the public by more than Rs8 billion. The findings, presented to the Public Accounts Committee (PAC) on December 12, 2025, highlight serious issues in the billing system, meter reading process, and internal controls of the Power Division.

This detailed report explains the complete background, audit findings, scale of irregularities, reasons behind overbilling, the role of DISCOs, and how such practices affect ordinary consumers. It also includes analysis, public impact, and expected government actions.

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Power Companies Overbilled Consumers by Rs8 Billion – What the Audit Found

Audit officials informed the PAC that power distribution companies charged consumers for electricity units they never used. This included:

• Wrong meter readings
• Estimated billing without site visits
• Charging extra units to inflate monthly bills
• Overbilling on more than 1,000+ feeders
• Unauthorized refunds to selected consumers

The audit report reviewed records for the financial year 2022–23 and exposed a pattern of systematic mismanagement across multiple DISCOs such as:

• LESCO
• MEPCO
• FESCO
• HESCO
• SEPCO
• GEPCO
• PESCO

These alarming findings raise serious questions about transparency and accountability in Pakistan’s power sector.

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Total Irregularities Exceeded Rs8,727 Billion

One of the most shocking parts of the report was the mention of Rs8,727 billion worth of financial irregularities across the Power Division. These irregularities included:

• Overbilling to consumers
• Unauthorized tariff relief
• Faulty meter reading practices
• Lack of documentation
• Financial mismanagement

Officials confirmed that Rs9.34 billion had already been recovered, but a large amount of irregularity still remains unresolved.

Overbilling on More Than 1,000 Feeders

Auditors detected overbilling on thousands of feeders across multiple DISCOs.
This means that entire groups of consumers received inflated bills because of:

• Incorrect units
• Estimated meter readings
• Manipulated billing software
• Missing physical meter checks

In many cases, consumers complained they were billed for electricity even when their houses were partially locked or their consumption was low.

Meter Readers Often Did Not Visit Sites

An important reason behind the overbilling was revealed: meter readers did not visit the locations to take actual readings.

Instead, they:

• Entered estimated values
• Repeated previous readings
• Added excessive units
• Used “average billing” even when meters were working

This practice not only led to inflated bills but also violated standard procedures.

Unauthorised Refunds of Rs9.14 Billion

The audit further discovered that four DISCOs gave unauthorised refunds worth Rs9.14 billion to consumers who were not eligible.

According to official rules, tariff relief or slab adjustments are meant only for disconnected users, but audit teams found that 293,572 active consumers received these benefits between 2018 and 2023.

This indicates:

• Internal manipulation
• Poor monitoring
• Weak billing controls
• Possible corruption

Why Overbilling Happens – Major Causes Identified

Based on the audit, several reasons were highlighted:

1. Human Error and Negligence

Meter readers skipping visits causes incorrect readings and excessive billing.

2. Faulty Meter Reading Systems

Some meters were outdated, slow, or mismatched with digital billing systems.

3. Pressure on DISCOs to Recover Losses

Distribution companies often shift their system losses onto consumers.

4. Corruption and Manipulation

Unauthorized tariff relief shows internal misuse of authority.

5. Lack of Documentation

The Power Division secretary admitted that proper records and proof were unavailable during audits.

Impact on Consumers – Heavy Bills and Financial Stress

Overbilling directly affects millions of households across Pakistan.
Consumers face:

• Higher monthly electricity bills
• Increased debt due to bill installments
• Late payment surcharges
• Stress on low-income families
• Loss of trust in the power supply system

Many consumers already complain about high electricity tariffs due to fuel adjustments, taxes, and surcharges.
Overbilling makes the situation even worse.

Public Reaction – Anger, Protests & Demand for Accountability

After the report surfaced, social media platforms saw a strong reaction.
Common sentiments include:

• “Electricity prices are already too high, now overbilling too?”
• “Why should consumers pay for meter readers’ negligence?”
• “Government must punish those responsible.”

In several cities, consumer rights groups called for:

• Refunds to citizens
• Strict punishment for involved officials
• Transparent billing reforms

Government’s Response – What PAC Plans to Do

The Public Accounts Committee (PAC) is expected to:

• Seek explanations from all DISCOs
• Order rechecking of feeder-wise billing
• Direct DISCOs to compensate consumers
• Hold responsible officers accountable
• Improve meter reading SOPs

The Power Division has stated that it will cooperate with auditors and ensure corrective measures.

How Consumers Can Protect Themselves from Overbilling

To avoid paying for units you never used, consumers should:

1. Always Check the Meter Reading on the Bill

Compare actual units with the printed units.

2. Take a Photo of Your Meter Monthly

This acts as proof in case of disputes.

3. Use Online Billing Portals

Many DISCOs allow viewing real-time meter readings.

4. Contact Customer Support Immediately

Lodge a complaint through:

• Helpline
• WhatsApp service
• Online billing portal
• Local complaint office

5. Request Rebilling

If an incorrect unit is detected, consumers can request correction without penalty.

Electricity Overbilling – A Long-Standing Issue in Pakistan

This is not the first time DISCOs have been accused of inflating bills.

Common past issues include:

• Fuel price adjustment spikes
• Quarterly adjustments
• Estimated readings
• Wrong tariffs applied
• Misreported meter tampering

The new audit proves that the system still needs major reforms.

Need for Stronger Reforms in the Power Sector

Experts believe Pakistan needs structural changes such as:

• Digital smart meters
• AI-based meter reading
• Transparent billing mechanisms
• Regular independent audits
• Staff accountability measures
• Strict monitoring of feeder losses

Smart meters alone could reduce billing disputes by up to 70%, experts say.

Conclusion – Overbilling Scandal Raises Serious Concerns

The revelation that power companies overbilled consumers by Rs8 billion highlights severe flaws in Pakistan’s energy management system. The audit findings show:

• Widespread overbilling
• Unauthorized financial practices
• Weak internal controls
• Poor transparency
• Lack of accountability

Consumers now hope that the PAC and government take strong corrective action to protect citizens from such unfair practices.
Until then, the public must stay vigilant by monitoring their monthly bills and reporting any discrepancies.

FAQs – Power Companies Overbilling Consumers (2025 Update)