Iesco remained in the lead thanks to its plausible performance in curbing losses, improving recoveries and acting in line with the schedule of new connections. PHOTO: ARCHIVE
ISLAMABAD:
Distribution power companies (DISCOs) were involved in an over-billing scam worth Rs 47 billion to hide inefficiencies, electricity theft and line losses, audit officials told a sub-committee of the Public Accounts Committee (PAC) on Thursday.
The PAC subcommittee examined the issue of overbilling caused by incorrect meter readings. Audit officials revealed that Lahore Electric Supply Company (Lesco) accounted for Rs 45 billion of the over-billing, followed by Peshawar Electric Supply Company (Pesco), which overbilled consumers by Rs 1.56 billion.
According to the Energy Division secretary, 278,649 consumers received inflated electricity bills worth Rs 47 billion in a single month. He said smart meters and transformer-based metering systems were being installed to prevent such incidents, adding that no complaints of overbilling had been received since their introduction.
Audit officials told the meeting that lower-level DISCO employees involved in meter reading had been responsible for the overbilling because they exercised excessive discretionary powers. They said consumers who paid were deliberately overbilled to hide electricity theft and line losses, while refunds were issued only to consumers who filed formal complaints.
PAC members also noted that power companies had overbilled consumers for 904 million units of electricity in just one month. Senator Afnanullah criticized the employees involved, saying those figures represented only the cases that had been detected. “We don’t know how many consumers are overbilled each month,” he said.
“If a person who earns only Rs 20,000 a month receives an electricity bill of Rs 100,000, that could lead to electricity theft,” he said, adding: “People are selling the gold they had saved for their daughters’ weddings just to pay the electricity bills.”
Replying to the Energy Division secretary, committee member Saleem Mandviwalla said: “It’s easy for you to say this, but have you considered how consumers had to borrow money to pay these inflated bills? We have been hearing for the last 20 years that smart meters will be installed.”
Lesco’s chief executive said overbilling in the company’s service area had been reduced to zero. He claimed that electricity theft had been significantly curbed with the help of the Rangers. For the first time, he added, one executive engineer (XEN) and seven sub-divisional officers (SDO) were dismissed from the service.
The sub-committee also reviewed an audit finding that revealed misappropriation of Rs 1.06 billion in the service area of Hyderabad Electric Supply Company (Hesco) through payments to ghost and retired employees. The audit report said the fraud involved collusion between a withdrawal and disbursement officer (DDO), a XEN and the office of the chief financial officer (CFO).
