Audit reveals Rs47bn electricity overbilling
A government audit has uncovered an alleged Rs47 billion electricity overbilling scandal, raising serious concerns over billing practices by power distribution companies (DISCOs). The findings were presented before a subcommittee of the Public Accounts Committee (PAC), where officials said inflated electricity bills were issued to hundreds of thousands of consumers.
Audit officials informed the committee that 278,649 consumers received excessive electricity bills in a single month. According to the findings, the overbilling involved nearly 904 million electricity units, creating a major financial burden for households and businesses across the country.
The audit report stated that the Lahore Electric Supply Company (LESCO) accounted for the largest share of the overbilling, with consumers allegedly charged around Rs45 billion beyond actual consumption. The Peshawar Electric Supply Company (PESCO) was identified as the second-largest contributor, with overbilling estimated at Rs1.56 billion.
Officials told lawmakers that the inflated bills were mainly caused by incorrect meter readings and misuse of authority by field staff responsible for recording electricity consumption. They alleged that overbilling was used to hide electricity theft, transmission losses and inefficiencies within the distribution system. Consumers who regularly paid their bills were reportedly charged extra, while refunds were usually made only after formal complaints were submitted.
The Power Division informed the committee that reforms are being introduced to improve the billing system. Smart electricity meters and transformer-based metering technology are being installed in different regions to reduce human error and improve transparency. Officials said these measures have already helped reduce complaints of overbilling in areas where the new system has been implemented.
Members of the Public Accounts Committee expressed concern over the scale of the issue and questioned how many similar cases had gone unnoticed. They said the reported figures likely represent only the cases detected through audits, while many more consumers may have suffered from incorrect billing without being aware of it.
Lawmakers highlighted the financial difficulties faced by ordinary citizens because of inflated electricity bills. They said many families had been forced to borrow money or sell personal belongings to pay their electricity charges, adding that such practices have increased public frustration over rising utility costs.
The committee was also informed that disciplinary action had been taken against officials found responsible for irregularities. According to the management of LESCO, stronger anti-theft operations and stricter monitoring have significantly reduced electricity theft and eliminated overbilling in its service area. Several officers, including an executive engineer and multiple sub-divisional officers, have been dismissed over misconduct.
During the same meeting, another audit report highlighted alleged financial irregularities in the Hyderabad Electric Supply Company (HESCO). The report claimed that Rs1.06 billion was misappropriated through payments made to ghost employees and retired staff, with investigators pointing to possible collusion among officials involved in financial administration.
