KARACHI:
NEPRA’s recent report on the billing practices of Pakistan’s Distribution Companies (DISCOs) for July and August 2023 provides a comprehensive and critical analysis of the sector. The report reveals findings that raise significant concerns. For instance, in July 2023, the Multan Electric Power Company (MEPCO) billed over 5.7 million consumers for cycles exceeding the standard 30 days resulting in inflated bills and unfairly pushing consumers into higher tariff slabs. Similarly, in August 2023, the Gujranwala Electric Power Company (GEPCO) affected approximately 1.2 million consumers by extending billing cycles. This practice also led to inflated bills and placed an undue burden on consumers.
The report identifies significant issues with invalid meter readings and snapshots, with major contributors being MEPCO, Lahore Electric Supply Company (LESCO), Quetta Electric Supply Company (QESCO) and Sukkur Electric Power Company (SEPCO). Defective meters, particularly prevalent in MEPCO, exacerbate the problem, leading to overbilling and financial strain on consumers. The report highlights an alarming age-wise analysis of defective meters across DISCOs with MEPCO alone having 272,370 defective meters by August 2023. The delay in replacing these meters resulted in consumers being inaccurately charged for extended periods. Additionally, the report uncovers discrepancies in sample bills across various DISCOs including differences in meter readings, incorrect slab charges and issues with meter snapshots.
Contrastingly, K-Electric (KE), operating under a privatised model, presents a different scenario. KE’s case indicates that privatisation can result in improved service delivery, enhanced accountability and better resource management. The NEPRA report serves as a stark reminder of the need for reform in the power sector emphasising the potential benefits of privatisation based on KE’s example. The billing inefficiencies and irregularities within DISCOs directly affect the financial well-being of millions of consumers underscoring the pressing need for reform and enhancement in the management and operational practices of these entities.
Muhammad Wali Farooqi
Islamabad
Published in The Express Tribune, December 20th, 2023.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
