ISLAMABAD: Following an extensive investigation into the excessive billing issues of power distribution companies (DISCOs) including K-Electric, the National Electric Power Regulatory Authority (NEPRA) has issued a comprehensive directive to address the grievances of consumers and ensure compliance with regulatory standards.
According to NEPRA, all DISCOs have been directed to comply with the directive and rectify/address all the pointed-out discrepancies within one month/billing cycle and the compliance report concerning directions shall reach the NEPRA office within 30 days of the receipt of the directive. And, in case of failure of Distribution Companies (DISCOs, KE) to comply with this directive, the Authority (NEPRA) will be constrained to issue Show Cause notice under regulation 4 of the Fine Regulations for the proceedings already initiated and initiate any other proceedings as provided in any other applicable provision of law, said NEPRA.
Earlier, the Authority (NEPRA) received numerous complaints from all across Pakistan regarding charging of excessive and wrong bills by the DlSCOs and Karachi Electric Limited (KEL) to the consumers on account of delay in monthly meter readings, average billing, and meter reading without snaps, etc., resultantly protected/life-line billing status/tariff of less user consumers was changed to non-protected/non-lifeline in the months of July 2023 & August 2023.
The Authority provided an opportunity of hearing to the DISCOs on September 13, 2023. However, the DISCOs failed to submit any cogent justification and the Authority constituted an inquiry committee (the Committee) comprising of NEPRA professionals to probe further into the matter and submit its comprehensive report in this regard for consideration of the Authority.
The Committee submitted its report which revealed numerous violations of applicable documents on part of all DISCOs while the details of discrepancies, violations and contraventions were clearly mentioned in the Inquiry Report which was also published on NEPRAs official website on December 4, 2023.
Despite publication of report on NEPRA’s official website, the DISCOs failed to take remedial measures and resolve the billing issues as highlighted in the Inquiry Report. Resultantly, the Authority decided to initiate legal proceedings against the delinquents and explanations were issued to all the DISCOs on December 22, 2023 under Regulation 4(1) & (2) of NEPRA (Fines) Regulations, 2021 (“Fine Regulations”) to either admit or deny the occurrences of the violation(s) reflected in the Inquiry Report within fifteen (15) days. In response, the DISCOs submitted the replies, however, after thorough examination the same were found unsatisfactory by the Authority.
The Ministry of Energy (Power Division) also constituted an independent committee (the “GoP Inquiry Committee”) to inquire into the issues of excessive billing and other matters raised by NEPRA vide the aforementioned Inquiry Report. The report of the GOP Inquiry Committee dated December 26, 2023 was received in NEPRA on February 12, 2024 (“GoP Inquiry Report”). The GoP Inquiry Report also highlighted areas of improvements.
According to NEPRA, the Authority has reasonable cause to believe that the violation has in fact occurred, however, instead of forthwith issuing directions to the Registrar to issue show cause notice to the DISCOs under the Fine Regulations, the Authority has decided to issue this directive in the larger interest of the consumers and the sector to afford an opportunity to the DISCOs to redress the grievance of the consumers.
NEPRA, in a statement, said that the Authority has issued the following directions to the DISCOs:
- DISCOs have been directed to comply with all the recommendations/directions highlighted in the Inquiry Report and GOP Inquiry Report.
- Distribution Companies shall replace all defective meters immediately having age above two (02) months. Data of such meters be retrieved and the consumers be charged actual reading instead of excessive/average billing.
iii. Distribution Companies shall coordinate with Power Information Technology Company (PITC) and review all the inflated charged bills since June, 2023 and onwards which caused conversion of billing category from protected/life line consumers into unprotected/non-life line due to charging of billing cycle above (30) days and to revise bills on pro-rata basis to provide due benefit to the consumers without compromising on their status of protected/life line consumers as the case may be. As the electricity billing record of LESCO is not maintained by PITC, therefore, LESCO shall scrutinize its own record and take similar action, accordingly. Additionally, LESCO is directed to ensure that electricity billing record must be shared and synchronized with PITC in imminent future similar to other distribution companies (DISCOs).
- DISCOs shall initiate proceedings against the concerned officers/officials for violation of provisions of CSM and other applicable documents as per their service rules on account of carrying out such illegal practices.
- HESCO, SEPCO, TESCO & PESCO shall circle wise scrutinize each un-recovered detection bill(s) charged during July, 2018 to June, 2023 to check their authenticity and ensure the recovery of the same. In case it is proved that the detection bills were charged wrongly, the revenue as well as the billed units be reversed and the amount appearing as receivable be adjusted accordingly. Subsequently, action be taken against the concerned field formations i.e. SDO and XEN for violation of provisions of CSM while charging such detection bills. MEPCO, QESCO and LESCO shall immediately recover the unpaid detection bills charged during July, 2018 to June, 2023.
- All the Distribution Companies should strictly follow the provisions of CSM and tariff terms and conditions in true letter and spirit especially carry out in meter readings in billing cycle of 30 days, printing of percentage checking to ensure accuracy of meter readings, issuance of detection bills, replacement of defective meters, etc. Moreover, DISCOs are further directed to educate their officers! officials about NEPRA Act, tariff terms & conditions, CSM, Consumer Eligibility Criteria, etc.
