DISCOs incurred over Rs196b loss to national kitty: Report
- By Web Desk -
- Aug 09, 2024
ISLAMABAD: The power companies has caused over Rs196 billion to the national exchequer in one year, ARY News reported quoting audit report.
According to the Auditor General of Pakistan’s audit report for 2023-24, eight power companies have incurred losses exceeding the stipulated limit, resulting in a massive loss of national kitty.
The report highlights that the power companies’ losses exceeded the limit set by NEPRA, ranging from 8.84% to 20.16%. PESCO topped the list, causing a loss of Rs133 billion, followed by SEPCO (Rs19 billion and 17 crore), LESKO (Rs14 billion and 954 crore), FESCO (Rs6 billion and 29 crore), MEPCO (Rs3 billion and 80 crore), and GEPCO (over Rs2 billion and 87 crore).
The report attributes the excessive losses to old transmission lines and long feeders. The power companies’ inability to meet the stipulated limit has resulted in a major financial burden on the national exchequer.
READ: NEPRA confirms overbilling by all DISCOS including K-Electric
The report came at the time when National Electric Power Regulatory Authority (NEPRA) confirmed electricity overbilling by all power distributing companies (DISCOs) including K-Electric, in April and June and sought an explanation from the companies on the matter.
According to the official notification, NEPRA decided to issue directions to all distribution companies, to adjust the bills of consumers according to the actual units consumed.
The notification stated that the companies had charged consumers more than the actual units consumed in April and June, which is a violation of NEPRA’s rules. The companies will have to adjust the bills of consumers according to the actual units consumed.
NEPRA also directed the companies not to charge late payment surcharges from consumers who could not pay their bills on time. The companies will have to adjust the bills of consumers who have paid their bills with late payment surcharges.
Electricity overbilling
Over 0.3 million power consumers moved out of the protected category and had to pay inflated electricity bills in the month of June due to a new billing system introduced by DISCOs on the orders of the Ministry of Energy.
Consumers in the protected category receive certain protections or benefits, such as subsidised rates or exemptions from price increases.