Overbilling scandal: Consumers robbed of Rs244bn by eight Discos, audit reveals

An official audit has revealed that eight electricity distribution companies (Discos) defrauded consumers of hundreds of billions through inflated billing, deepening the financial strain on financially-burdened households across the country.

According to the Auditor General of Pakistan’s latest report, these companies overbilled consumers by Rs244 billion, allegedly to hide inefficiencies, line losses, and electricity theft.

The audit names Islamabad Electric Supply Company (Iesco), Lahore (Lesco), Hyderabad (Hesco), Multan (Mepco), Peshawar (Pesco), Quetta (Qesco), Sukkur (Sepco) and Tribal Areas Electric Supply Company (Tesco) among those involved.

Five of the companies reportedly overbilled 278,649 consumers by Rs47.81 billion in a single month, the report states.

Over 900 million extra units were billed to customers during the 2023–24 financial year, with no action taken against officials responsible, the audit reveals.

In some cases, companies claimed to have refunded billions of rupees, but audit authorities said no evidence was provided and demanded records for verification.

A separate finding shows Rs22 billion worth of extra billing was carried out in the name of “adjusting load” to cover technical losses.

The report highlights Qesco as the worst offender, with Rs148 billion in overbilling to agricultural consumers. It alleges that Qesco inflated tube well bills to mask poor performance.

Meanwhile, 1,432 feeders across the companies were used to send inflated bills totalling Rs18.64 billion. Despite repeated requests, relevant records were not shared with audit teams.

Some consumers did receive refunds — including Rs5.29 billion for incorrect meter readings, and Rs2.18 billion in credit adjustments from Pesco.

Audit officials have sought explanations from all eight companies.