The Public Accounts Committee (PAC) has uncovered Rs. 47.81 billion in alleged electricity overbilling affecting more than 278,000 consumers in a single month, while the government announced plans to privatize three power distribution companies (DISCOs) by early 2027.
During a meeting chaired by Shahida Akhtar Ali, the committee reviewed the Power Division’s Audit Report 2024-25, which contains 20 audit observations involving more than Rs. 508 billion.
According to audit officials, power distribution companies overbilled 278,649 consumers by Rs. 47.81 billion through incorrect meter readings. The audit alleged that the inflated bills were used to mask transmission and distribution losses as well as operational inefficiencies.
Lahore Electric Supply Company (LESCO) accounted for nearly Rs. 45 billion of the disputed amount, while Peshawar Electric Supply Company (PESCO) was responsible for around Rs. 1.56 billion.
Power Division Secretary Dr. Fakhray Alam Irfan told the committee that the government is deploying smart meters and transformer-based metering systems to reduce billing errors. He said Islamabad Electric Supply Company (IESCO) has already installed around one million smart meters. However, PAC members criticized the slow pace of reforms, noting that similar commitments have been made for years.
The committee was also informed that refunds were typically issued only to consumers who challenged inflated electricity bills. Audit officials alleged that some field staff deliberately overbilled paying consumers to conceal electricity theft and line losses.
Separately, the PAC examined an alleged Rs. 1.06 billion embezzlement case at Hyderabad Electric Supply Company (HESCO), where salaries were allegedly paid to ghost and retired employees.
HESCO’s chief executive informed the committee that four employees had been dismissed, while the Federal Investigation Agency (FIA) said it had registered five FIRs, placed more than 130 individuals under investigation, and recovered approximately Rs. 130 million.
The committee directed the Power Division to verify employees across all DISCOs and shift salary payments to a digital system to improve transparency and curb fraud.
During the briefing, the Power Division also said the government is moving ahead with power sector privatization. Officials said the sale of three DISCOs is in its final stages and is expected to be completed by early 2027.
Financial advisers are also being appointed for the privatization of HESCO and SEPCO, while TESCO and QESCO will remain under government ownership in line with a federal cabinet decision.
The PAC also decided to write to the prime minister over the repeated absence of principal accounting officers from committee meetings and warned that future proceedings would not continue without their attendance.
