ISLAMABAD : National Electric Power Regulatory Authority (NEPRA) has caught Distribution Companies (DISCOs) and K-Electric for overbilling / charging 3,080,186 consumers with an amount of Rs 3.572 billion from January to June 2024 , top of which was Gujranwala Electric Power Company (GEPCO) and Multan Electric Power Company (MEPCO, well informed sources told Newzshewz.
A number of consumers were shifted from a lower slab to higher slab, protected to non-protected only because of meter reading beyond 30/31 days whereas from in some months the consumers were shifted from lower slab to higher slab due to negative pro-rata adjustment.
” Shifting in consumers category, whether it was from protected to non -protected, lifeline to non-lifeline or lower slab to, has resulted in a higher tariff being charged to the consumers which led to excess billing,” the sources said adding that due to excess billing during January 2024 to June 2024, domestic consumers were charged extra units / amounts because of their category changed.
DISCO-wise consumers are as follows ;(i) GEPCO, 418,327;(ii) FESCO, 115,161;(iii) IESCO, 512, 347;(iv)MEPCO, 643,139;(v) PESCO, 165,973;(vi) HESCO, 168,610;(vii) 157,734;(viii) QESCO, 70,437 ;(ix) LESCO just mentioned amount of Rs 176,686,831 ; and (x) K-Electric, 828,467. However, KE and LESCO has also provided the total number of units adjusted against the excess billing.
Besides, average billing was also one of the factors was also investigated that shifted consumers from lower to higher slabs. The total number of effected consumers were in January 2024 were 31,895, February 38,954, March 50, 997, April 63,052, May 49,092 and June 42,892.
The Investigation Committee also found that 8,039 consumers of B2/B3 / B4 consumers whose average hourly consumption was higher than recorded MDI. The cumulative impact of overall manipulation of Maximum Demand Indicator (MDI) was recorded at Rs 2.733 billion.
Overall it has been observed that the number of industrial consumers recording an MDI higher sanctioned load has increased from 9,758 in January 2024 to 10,115 in June 2024. some of the consumers have been exceeding their sanctioned load over multiple months from January to June 2024.
Similarly, the Committee conducted another analysis whereby the total monthly consumption was compared against the recorded MDI. During analysis, it was observed that the total monthly consumption of certain B2/B3/B4 consumers when divided against total hours of the month, exceeded recorded MDI. This highlighted the possibility that the MDI may have been manipulated by certain consumers to decrease the fixed charges levied on them while the consumption far exceeded this number. The total number of this trend were 8,039.
The Ministry of Energy (Power Division) in a letter of August 01, 2024 informed that the Prime Minister gave the following directions during a briefing held on June 11, 2024:
“Power Division to initiate a forensic audit inquiry into the issue of overbilling by DISCOS and manipulation of Maximum Demand Indication (MDI) by the industrial sector.”
In this regard, Power Division requested NEPRA to undertake the task, conduct a forensic audit/inquiry, and submit a report for onward transmission to the Prime Minister’s Office.
The Authority considered the request of MoE and constituted a committee for investigation under Section-27A of the NEPRA Act. The committee was directed to investigate incidents of overbilling across all consumer categories and MDI manipulation by the industrial sector for the period from January to June 2024.
Subsequently, the investigation committee conducted a thorough investigation and probed the matter thoroughly based on the data provided by PITC, LESCO & K-Electric as well as findings noted during field verifications of DISCOs. The investigation committee concluded its investigation.
The Authority while considering the investigation report, has issued the following directions immediate compliance by the DISCOs and KE: (i) the consumers are being charged wrong readings and subsequently the same were adjusted / credited through A type (CP-52) adjustments. This is carried out by the DISCOs to hide their inefficiencies in terms of losses. In this regard, based on the data given in the report, all the DISCOs are directed to justify such figures with reasons and to take action against concerned officer/officials and submit a report to NEPRA ;(ii) all the DISCOs are directed to circle-wise scrutinize each unrecovered detection bill during the period January 2024 to June 2024 to validate their authenticity and ensure recovery of the same. In case it is proved that the detection bill was charged wrongly, the revenue as well as the billed units be reversed and the amount appearing as receivables be adjusted accordingly. Action shall be taken against the relevant officials / officers for violation of the provisions of the Consumer Service Manual (CSM) in charging the detection bill; (iii) the recorded MDI of thousands of B1 consumers is higher than their sanctioned load and the same is persistent in the consecutive months. The data is given in report, therefore, all DISCOs are directed to ensure the extension of load and conversion of all such B1 consumers to B2 as per procedure given in CSM after issuance of notice in order to avoid financial loss to the National Exchequer, in the future. Similarly, all DISCOs are directed to follow the same procedure in case of B2/B3/B4 consumers having recorded MDI higher than sanctioned load; (iv) a number of consumers exist in DISCOs who are declared as B2 industrial consumers but their recorded MDI as well as sanctioned load is less than 25 kW & are being billed with fixed charges. which is highly unjustified, therefore, all the DISCOs are directed to rectify such discrepancies and ensure to revise their category as B1 after checking their sanction and connected load. Further, in case of conversion of tariff category of such consumers from B2 to B1, the amounts so charged be refunded since their declaration as B2 in light of notified terms and conditions of tariff ;(v) the certain industrial consumers showed energy consumption which did not compliment the MDI that they recorded. Therefore, DISCOS are directed to check all such industrial consumers which show the MDI less than the average consumption and take corrective action where needed as per prescribed law ;(vi) it has been observed that the officers/ officials are unaware of NEPRA Act, Rules & Regulations, especially Consumer Service Manual. Therefore, the NEPRA Act, Rules & Regulations, especially Consumer Service Manual, Consume Eligibility Criteria, Tariff terms & conditions etc. shall be included in the training programs at all levels i.e. induction courses and subsequent promotion/refresher courses ;(vii) the record of AMR meters is not being properly monitored by DISCOs due to which the discrepancies in metering equipment are not being pointed out, timely. The distribution companies are directed to be vigilant enough to point out any discrepancy in AMR meters on timely basis to avoid loss of revenue ;(viii) during investigation and field verifications in different DISCOs, it was observed that
100% AMI/AMR meters are not installed for industrial consumers. Therefore, it shall be ensured that the AMI/AMR meters be installed at all industrial consumers i.e. BI,
B2, B3 & B4 ;(ix) DISCOs have been directed to review the specifications of energy meters to avoid frequent defectiveness ;(x) DICSOs have been directed to replace defective meters immediately to avoid average billing ;(xi) ) DISCOs have been directed to scrutinize all types of meters to check for any discrepancy i.e. display wash, slowness, disturbed time & date etc. and replace the same immediately after ascertaining defectiveness. It must be noted that the cost of replacement of defective meters must be levied in accordance with the clause 4.4 of CSM ;(xii) all the distribution companies are directed to align their monthly meter reading schedule in accordance with billing period defined in tariff terms and conditions ;(xiii ) all DISCOs are directed to ensure that their M&T department must follow the SOPs and meter checking be conducted within the defined scheduled dates ;(xiv) DISCOs have been directed to ensure 100% audit of snaps and keep proper record of monthly reports, snaps at sub-divisional, revenue office and MIS level ;(xv) DISCOs have directed to engage Internal Audit parties in order to point out discrepancies where excessive bill, wrong MDI, wrong detection bills, wrong application of tariff are charged to the consumers ; and (xvi) DISCOs have been directed to follow the provisions of Consumer Service Manual in true letter and spirit in meter readings, printing of accurate snaps, percentage checking, snap auditing to ensure accuracy of meter readings, issuance of detection bills and timely replacement of defective meters etc.
According to NEPRA directions of the Authority have been forwarded for strict compliance. Any failure to comply with these directives will result in initiation of appropriate action in accordance with law. A compliance report (para-wise) shall be submitted of this directive.
