Massive Rs244 Billion Overbilling Scandal Rocks Pakistan’s Power Sector
ISLAMABAD — A sweeping government audit has uncovered a colossal overbilling scheme across Pakistan’s power sector, implicating eight major electricity distribution companies in defrauding consumers of more than Rs244 billion. The revelations, confirmed by multiple government oversight bodies and judicial institutions, have sparked public outrage and renewed calls for structural reform, reported by The Nation News Pakistan.
The audit, commissioned by the government and conducted by independent and judicially backed authorities, alleges that the distribution companies — including IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO — engaged in systematic overbilling to mask line losses, operational inefficiencies, and rampant electricity theft.
In a particularly damning finding, Multan Electric Power Company (MEPCO) was discovered to have issued Rs49.6 million in bills to deceased individuals. Overall, five of the eight companies overbilled 278,649 consumers by nearly Rs48 billion in just one billing cycle.
The audit further found that in fiscal year 2023–24 alone, consumers were charged for an unjustified 904.6 million extra electricity units. One of the most egregious cases involved QESCO, which overbilled agricultural consumers by over Rs148 billion — a move reportedly intended to obscure internal mismanagement.
Despite repeated auditor requests, key billing verification records were not provided, deepening suspicion of deliberate concealment. Ten companies were also flagged for issuing Rs18.64 billion in excessive charges across 1,432 feeders.
To compound the scandal, Rs22 billion in “extra load” charges were levied under the guise of reducing line losses — a justification auditors say lacks transparency and accountability.
While some consumers were refunded — including Rs2.18 billion in multi-credit adjustments by PESCO and Rs5.29 billion for false meter readings — no disciplinary action has yet been taken against responsible officials.
The scandal comes amid Prime Minister Shehbaz Sharif’s push to privatize power distribution companies as part of broader reforms to fix Pakistan’s beleaguered energy sector — a move now facing intensified scrutiny in light of the fraud revelations.
