Overbilling scams: Nepra issues directives to Discos, K-Electric

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) issued directives on Friday to XWDiscos and K-Electric following their failure to provide a satisfactory reply to the inquiry report it furnished after widespread overbilling complaints in July-August 2023.

The regulator received complaints nationwide about excessive and incorrect billing by distribution companies, affecting consumers due to delays in meter readings and other issues. The protected tariff status for some users changed to non-protected due to billing errors in these two months.

Despite a hearing on September 13, 2023, distribution companies failed to justify the errors, leading to an inquiry by Nepra professionals. The committee’s report, published on December 4, 2023, revealed violations by all distribution companies. Despite this, companies did not address issues, prompting the Authority to initiate legal proceedings on December 22, 2023.

Replies from companies were deemed unsatisfactory. An independent committee formed by the Ministry of Energy submitted its report dated December 26, 2023, outlining areas for improvement was received by Nepra on February 12, 2024. The Authority, believing violations occurred, opts to issue a directive for redress instead of immediate fines, prioritising consumer interests.

Now, on Friday, Nepra issued directives to XWDiscos and K-Electric to address issues of consumers and act against those involved in overbilling scams.

It directed DISCOs to adhere to recommendations outlined in the inquiry report and GOP inquiry report, particularly focusing on the replacement of defective meters older than two months (July and August 2023).

Consumers will now be charged based on actual readings instead of excessive or averaged bills, ensuring fair billing practices.

DISCOs were instructed to collaborate with the Power Information Technology Company (PITC) to review inflated bills dating back to June 2023.

This review aims to rectify billing discrepancies, especially for protected/lifeline consumers who may have been wrongly categorised due to billing cycle extensions beyond 30 days.