Overbilling consumers

In an unusual move, the prime minister has extended the deadline for payment of electricity bills by 10 days after all of the nation’s power distribution companies, including K-Electric, were accused of exploiting consumers by overcharging them on top of backbreaking electricity tariffs. The 10-day extension in bill payment would be applicable for July and August bills. In a 14-page report released in December, the power sector regulator concluded that none of the distribution companies, called Discos, in the country is charging bills with 100% accuracy. The bills come at a time when the salaried class is already bearing the brunt of increased income tax rates and will add to the financial burden every average household faces in the country.

This is not the first time the regulator has concluded overbilling by power producers. Last summer, there were massive protests across Pakistan against the practice. There is growing public resentment against energy prices in the country, more so after many realised how flawed our policies have been regarding independent power producers. The consumer is now paying for mismanagement that stretches back decades while being fleeced by Discos. What is the purpose of having a regulator that neither punishes the entities it supervises for misconduct nor effectively protects consumers? If the regulator fails to address this illegal practice, it will only encourage the power entities to continue their actions and the responsibility will fall on the regulator.

There is a dire need for power sector reforms and to lower the per unit price consumers have to pay. Our industries have become uncompetitive due to high energy prices, and passing the buck at such a crucial time will only lead to increased societal unrest and the collapse of our meagre industrial base. If the government is serious about the well-being of the people, it needs to act.