Huge Electricity Bills Shock Protected Customers

Over 300,000 power consumers were removed from the protected category and faced higher electricity bills in June due to a new billing system introduced by distribution companies (DISCOs) at the Ministry of Energy’s directive. According to official documents obtained by The Express Tribune, the Ministry of Energy directed DISCOs in a letter dated March 27 to implement a Pro-Rata Billing Mechanism. Ironically, this new mechanism aimed to protect lower-usage consumers who had been overcharged due to delayed meter readings. “To safeguard consumers’ rights and prevent inflated bills from delayed meter readings, a pro-rata billing mechanism is proposed. For billing months that exceed calendar month days due to holidays, celebrations, or climatic events, consumers should be billed on a pro-rata basis for the calendar month days,” the letter stated. However, this system resulted in additional units being charged to consumers to complete the 30-day billing cycle, causing millions to receive inflated bills. Consequently, 326,350 protected consumers ended up paying double bills. Protected consumers typically receive benefits like subsidized rates or exemptions from price increases to support low-income households or vulnerable groups, ensuring affordability of essential services like electricity. With the new system, 66,447 consumers of the Peshawar Electric Supply Company (Pesco), 63,265 of the Gujranwala Electric Power Company (Gepco), 62,765 of the Multan Electric Power Company (Mepco), 49,753 of the Lahore Electric Supply Company (Lesco), and 27,654 of the Faisalabad Electric Supply Company (Fesco) lost their protected status. Additionally, 26,800 consumers of the Hyderabad Electric Supply Company (Hesco), 11,631 of the Tribal Areas Electric Supply Company (Tesco), 11,129 of the Sukkur Electric Power Company (Sepco), 6,018 of the Quetta Electric Supply Company (Qesco), and 827 consumers of the Islamabad Electric Supply Company (IESCO) were also overbilled despite previously being in the protected category. Sources indicated that the National Electric Power Regulatory Authority (Nepra) had expressed concerns about the new billing mechanism, but consultants from the Power Planning and Monitoring Company (PPMC) pressured DISCOs to implement it immediately. Despite DISCOs’ resistance, the pro-rata system was launched with assistance from the Pakistan Information Technology Company (PITC). Sources noted that PPMC consultants had retired as GMs from the power sector ten years ago. Prime Minister Shehbaz Sharif announced strict action against officials and employees involved in overbilling during a meeting on power sector reforms and solarisation. A press release from the PM Office Media Wing stated that Shehbaz Sharif directed the Federal Investigation Agency (FIA) to identify and suspend such officials and take further strict action against them. “These officials and employees are enemies of the people,” PM Shehbaz said. “This criminal act of charging excessive units will not be tolerated.” The prime minister called for exemplary punishment for officials who had added extra units to consumers’ monthly bills and for unmasking those who sent extra units to protect consumers from using less than 200 units per month. In response to numerous overbilling complaints, Federal Minister for Interior Mohsin Naqvi ordered immediate legal action against the responsible officers and staff. Naqvi instructed all FIA directors to promptly address the grievances of consumers using up to 200 units of electricity. Labeling the practice of reclassifying protected consumers as non-protected as criminal, Naqvi directed the FIA to thoroughly investigate and take unbiased action based on the facts. He emphasized that the overbilling, which has imposed an additional burden of millions of rupees on consumers, particularly affects already struggling protected consumers. “Overbilling complaints and injustices faced by protected consumers must be addressed immediately,” he said.