Misuse of detection billing burdening 1.38m power consumers

• Detection billing used to cover transmission, distribution losses.
• Charges passed on to consumers on estimated, detected units.
• Report raises concerns on accuracy, legitimacy of detection units.
  

ISLAMABAD: Amid the government's ongoing efforts to provide relief to the people regarding utility bills, it has been revealed that more than a million power consumers are being burdened by the misuse of detection billing by several power distribution companies (Discos), The News reported on Thursday.

As per the National Electric Power Regulatory Authority's (Nepra) "State of The Industry Report 2024", detection billing affected 1.38 million consumers, resulting in charges totalling approximately Rs35 billion during the last quarter of fiscal year 2023-24 (April to June 2024).

However, these companies managed to recover only Rs5.736bn from consumers.

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, the report stated.

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, it added.

Furthermore, it 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, totalling over Rs1.5bn, of which it recovered Rs450.8m. Iesco billed 12,703 consumers for Rs349.85m, recovering Rs345.9m. Similarly, Gepco issued bills totalling Rs118.6m to 66,743 consumers, with a recovery of Rs861.3m.

Lesco issued bills amounting to Rs3.737bn to 38,712 consumers, recovering Rs1.176bn. Fesco billed 46,757 consumers for Rs360.64m, with recoveries reaching Rs630m. Mepco's bills totalled Rs769m, of which Rs1.376bn was recovered.

Hesco billed consumers Rs7.61bn, recovering Rs339m, while Sepco billed Rs13.157bn, recovering Rs411.97m. Qesco billed Rs195.85m to 7,446 consumers, recovering Rs144.85m. K-Electric's detection bills amounted to Rs7.44bn.

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 emphasises 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.