1.38m power consumers hit by detection billing abuse

ISLAMABAD: Power consumers across Pakistan are grappling with a significant financial burden caused by the misuse of detection billing by several power distribution companies (Discos), according to a recent report from the National Electric Power Regulatory Authority (Nepra).

During the last quarter of fiscal year 2023-24 (April to June 2024), the regulator identifies that detection billing affected 1.38 million consumers, resulting in charges totaling approximately Rs35 billion. However, these companies managed to recover only Rs5.736 billion from consumers, the Nepra’s State of The Industry Report 2024 said.

Detection billing, used ostensibly to cover transmission and distribution (T&D) losses or to artificially boost the financial performance of Discos, has unfairly burdened consumers. Instead of addressing T&D losses through infrastructure improvements, these charges were passed on to consumers based on estimated or detected units of electricity usage, rather than actual consumption.

The report underscores that multiple Discos including Pesco, Iesco, Gepco, Lesco, Fesco, Mepco, Hesco, Sepco, Qesco, and K-Electric issued such bills across various regions of Pakistan. Consumers faced significant charges, with recovery rates remaining low, exacerbating financial strains for many.

Pesco alone issued detection bills to more than 70,000 consumers, totaling over Rs1.5 billion, of which it recovered Rs450.8 million. Iesco billed 12,703 consumers for Rs349.85 million, recovering Rs345.9 million. Similarly, Gepco issued bills totaling Rs118.6 million to 66,743 consumers, with a recovery of Rs861.3 million. Lesco issued bills amounting to Rs3.737 billion to 38,712 consumers, recovering Rs1.176 billion. Fesco billed 46,757 consumers for Rs360.64 million, with recoveries reaching Rs630 million. Mepco’s bills totaled Rs769 million, of which Rs1.376 billion was recovered. Hesco billed consumers Rs7.61 billion, recovering Rs339 million, while Sepco billed Rs13.157 billion, recovering Rs411.97 million. Qesco billed Rs195.85 million to 7,446 consumers, recovering Rs144.85 million. K-Electric’s detection bills amounted to Rs7.44 billion.

The disparity between billed amounts and recoveries raises concerns about the accuracy and legitimacy of detection units used by these Discos. The lack of transparency and perception of financial manipulation through detection billing has led to widespread dissatisfaction, eroding consumer trust in the billing system.

In response to these issues, Nepra has urged Discos to strictly adhere to its guidelines on issuing detection bills. The regulatory body emphasizes that such bills should only be issued when clear evidence of consumption discrepancies exists. Nepra called for enhanced transparency in the billing process to restore consumer confidence in the fairness of electricity charges.