All of the country’s power distribution companies, including K-Electric, have been accused of overcharging consumers on top of already burdensome electricity tariffs, prompting Prime Minister Shehbaz Sharif to extend the bill payment deadline by 10 days.
“All distribution companies, including K-Electric, have been implicated in overbilling,” the National Electric Power Regulatory Authority (Nepra) announced on Wednesday, citing an inquiry report.
The regulator stated that a team of its officers had conducted a detailed investigation into overbilling complaints from April to June 2024.
In a separate statement, the Ministry of Energy (Power Division) confirmed that the prime minister had ordered a 10-day extension for electricity bill payments, applicable to July and August bills.
“Prime Minister Shehbaz Sharif issued these instructions in light of the difficulties faced by consumers,” the power division said, noting that the directive had been communicated to all power companies.
Earlier, Nepra stated that explanations had been demanded from all power companies regarding overbilling concerns, and instructions were issued to compensate consumers already burdened by high electricity rates. Companies have been directed to adjust actual bills on a pro-rata basis in cases of lower meter readings.
Consumers unable to pay bills issued on a pro-rata basis would not face late payment surcharges, and those who had already paid, including late payment surcharges, would receive compensation through adjustments against these charges.
Nepra also instructed power companies to promptly replace faulty meters to avoid average or estimated billing and emphasized adherence to the consumer service manual for meter reading and billing. Companies are required to submit their compliance reports to the regulator within 30 days.
Sources indicated that Nepra is separately pursuing actions against power companies under rules that require formal show-cause notices, investigations, and the opportunity for management to hold responsible staff accountable and impose penalties. The full report is expected to be released later.
In December 2023, Nepra had similarly found all distribution companies responsible for malpractices and overbilling in electricity provision after a detailed investigation.
“There isn’t a single Disco in the country charging bills with 100% accuracy,” the regulator concluded in its 14-page report in December.
The previous inquiry had been launched after widespread complaints of “excessive, inflated, and incorrect bills” charged by Discos in July and August 2023. The same issues appear to have resurfaced from April to June of this year.
This situation raises concerns about the integrity of Discos’ entire revenue processes, from meter reading to billing and penalties.
Initially, the power division rejected Nepra’s report last year and formed its own inquiry committee, which upheld Nepra’s findings but cleared the power companies’ managements of any malicious intent.
In response to Nepra’s announcement, K-Electric stated that it had not yet received the regulator’s report but encouraged consumers to contact its customer care centers or use social media platforms for assistance with billing issues.
