Nepra fines Gepco, Fesco, Qesco Rs100m for overbilling, lapses

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has slapped fines totaling Rs100 million on three state-run power distribution companies — Gepco, Fesco, and Qesco — for overbilling consumers, inflating losses and failing to improve recoveries during the fiscal year 2023-24.

Nepra found that Gujranwala Electric Power Company (Gepco) manipulated meter readings to understate its transmission and distribution (T&D) losses, which climbed to 11.48 percent—well above the regulator’s target of 9 percent. The company admitted to overbilling practices that “affected millions of consumers” and violated the Nepra Act and Consumer Service Manual. It was fined Rs50 million and given 15 days to pay.

In a separate case, Gepco was also fined Rs100,000 per day for continuous non-compliance with Nepra’s earlier order requiring 100 percent earthing of HT/LT structures within its network.

The Faisalabad Electric Supply Company (Fesco) was penalized Rs10 million for deliberate overbilling and masking operational inefficiencies. It also failed in reducing T&D losses FY2023-24. Nepra rejected Fesco’s claims that reduced industrial demand caused higher losses, saying the company “manipulated bills to conceal inefficiencies” and failed to substantiate its justifications. In Quetta Electric Supply Company’s (Qesco) case, the regulator imposed a Rs40 million fine for persistent inefficiency, poor recoveries and failure to curb T&D losses. The Qesco blamed non-payment of agricultural subsidies and law-and-order issues in Balochistan for its weak performance, but Nepra rejected the arguments as “unconvincing and repetitive.” The regulator said the Qesco had long been aware of operational challenges in remote areas yet “failed to plan investments or improve recovery strategies despite repeated support through federal programs”.

Nepra directed all three utilities to deposit the fines within 15 days, warning that non-payment could result in recovery through arrears of land revenue and further legal action.