Iesco rose to the top thanks to its plausible performance in reducing losses, improving recoveries and meeting deadlines for new connections. PHOTO: FILE
ISLAMABAD:
Electricity Distribution Companies (DISCOs) were involved in an overcharging scam worth Rs 47 billion to cover up inefficiencies, power theft and line losses, audit officials told a sub-committee of the Public Accounts Committee (PAC) on Thursday.
The PAC subcommittee examined the issue of overbilling caused by incorrect meter readings. Audit officials revealed that the Lahore Electric Supply Company (Lesco) was responsible for Rs45 billion in overcharging, followed by the Peshawar Electric Supply Company (Pesco), which overcharged consumers by Rs1.56 billion.
According to the Electricity Division secretary, 278,649 consumers received inflated electricity bills amounting to Rs 47 billion in a single month. He said smart meters and transformer-based metering systems were being installed to prevent such incidents, adding that no complaints of overcharging had been received since their introduction.
Audit officials told the meeting that DISCO’s junior employees involved in meter reading were responsible for overcharging because they exercised excessive discretionary powers. They said paying consumers were deliberately overcharged to conceal electricity theft and line losses, while refunds were only given to consumers who formally filed a complaint.
PAC members also noted that power companies overcharged consumers for 904 million units of electricity in just one month. Senator Afnanullah criticized the employees involved, saying these figures only represented detected cases. “We don’t know how many consumers are overcharged each month,” he said.
“If a person who earns only Rs 20,000 per month receives an electricity bill of Rs 100,000, it could lead him to power theft,” he said, adding, “People sell the gold they saved for their daughters’ marriage just to pay electricity bills.”
In response to the Energy Division Secretary, Saleem Mandviwalla, a member of the committee, said, “It is easy for you to say this, but have you thought about how consumers had to borrow money to pay these inflated bills? We have been hearing for 20 years that smart meters will be installed. »
Lesco’s CEO said overcharging in the company’s service area has now been reduced to zero. He said electricity theft had been significantly reduced with the help of the Rangers. For the first time, he added, one executive engineer (XEN) and seven non-commissioned officers (SDO) were dismissed.
The sub-committee also examined findings of an audit which revealed misappropriation of Rs 1.06 billion in the service area of the Hyderabad Electric Supply Company (Hesco) through payments to ghost and retired employees. The audit report said the fraud involved collusion between a Drawings and Disbursements Officer (DDO), a XEN and the Chief Financial Officer’s Office (CFO).
