Audit reveals massive overbilling by electricity distribution companies

ISLAMABAD – July 22, 2025: Widespread financial irregularities have come to light within entities operating under Pakistan’s Power Division, ARY News reported on Tuesday, citing an official report.

As per details, eight electricity distribution companies have been found involved in overbilling amounting to Rs244 billion in Pakistan.

The audit covers IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO, according to official documents. The companies reportedly resorted to overbilling in an attempt to conceal line losses, electricity theft, and poor operational performance.

Even domestic consumers, agricultural tube wells, and deceased individuals were not spared. Multan Electric Power Company (MEPCO) alone reportedly issued bills worth Rs49.6 million to deceased persons.

The report noted that five of these distribution companies overbilled 278,649 consumers by Rs47.81 billion in a single month. Despite the scale of malpractice, no action has been taken against officials involved in concealing theft and line losses through overbilling.

In the fiscal year 2023-24, consumers were billed an additional 904.6 million units, according to documents. In some cases, refunds amounting to billions of rupees were claimed, prompting audit authorities to demand verification records.

Read more: PM Sharif directs to ‘accelerate’ DISCOs privatization process

Furthermore, Rs22 billion in overbilling was carried out under the pretext of managing line losses through extra load charges. The audit authorities have formally sought explanations from the eight distribution companies involved.

One alarming revelation includes QESCO’s overbilling of agricultural consumers, exceeding Rs148 billion, reportedly to mask inefficiencies up to FY 2023-24.

Additionally, 10 distribution companies issued Rs18.64 billion in extra billing through 1,432 feeders.

Despite repeated requests, audit officials were not provided the required billing records.

However, Rs5.29 billion was refunded to consumers in overbilling under incorrect meter readings, and PESCO offered Rs2.18 billion in multi-credit adjustments to affected users.