Mass overbilling prompts govt to revert to previous billing method

Pro-rata system to be abolished after approximately 326,350 protected consumers had to pay double bills

The federal government decided to abolish the pro-rata system for electricity billing and revert to the previous billing method.

Sources revealed that electricity distribution companies had secretly implemented the pro-rata system since March, leading to widespread overbilling issues.

Last month, it was revealed that over 0.3 million power consumers moved out of the protected category and had to pay inflated electricity bills in the month of June due to a new billing system introduced by distribution companies (DISCOs) on the orders of the Ministry of Energy.

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However, this new system resulted in charging additional units from consumers to complete the 30-day billing cycle, leading to millions of consumers receiving average bills. Due to the additional units charged in the bills, 326,350 protected consumers had to pay double the bills.

According to sources, the National Electric Power Regulatory Authority (Nepra) had expressed concerns over the implementation of the new billing mechanism, but consultants associated with the Power Planning and Monitoring Company (PPMC) pressured DISCOs to implement the system immediately.

The move prompted Prime Minister Shehbaz Sharif and the Minister of Interior Mohsin Naqvi to take immediate notice of the issue in June during a meeting regarding reforms in the power sector and the solarisation process.

In response to a surge of complaints about overbilling, Naqvi issued strict directives to all directors of the FIA to promptly address the grievances of consumers who use up to 200 units of electricity, reported APP.

“Overbilling complaints and injustices faced by protected consumers must be addressed immediately,” Naqvi concluded.