Nepra Cracks Down: Power Companies Fined Millions for Overbilling and Inefficiency
The National Electric Power Regulatory Authority (Nepra) recently levied fines totaling Rs. 100 million on three state-run power distribution companies: Gujranwala Electric Power Company (Gepco), Faisalabad Electric Supply Company (Fesco), and Quetta Electric Supply Company (Qesco). These penalties stem from serious violations including overbilling consumers, inflating losses, and failing to improve recoveries during the fiscal year 2023-24.
Nepra’s actions underscore its commitment to regulatory oversight and consumer protection within the power sector. The authority’s investigations revealed deliberate non-compliance and operational inefficiencies across the board.
Nepra Imposes Hefty Fines on Gepco
Gepco faced the largest penalty, a significant Rs. 50 million, for manipulating meter readings to understate its transmission and distribution (T&D) losses. The regulator found that Gepco’s T&D losses rose to an alarming 11.48 percent, significantly exceeding Nepra’s target of 9 percent. The company admitted to overbilling practices that “affected millions of consumers,” violating both the Nepra Act and the Consumer Service Manual.
The National Electric Power Regulatory Authority gave Gepco 15 days to pay the fine. Separately, Gepco also incurs a daily fine of Rs. 100,000 for ongoing non-compliance with an earlier Nepra order regarding 100 percent earthing of HT/LT structures.
Fesco Penalized for Concealed Inefficiencies
Faisalabad Electric Supply Company (Fesco) was fined Rs. 10 million for deliberate overbilling and concealing operational inefficiencies. Nepra’s inquiry found that Fesco consistently failed to reduce T&D losses in FY2023-24. The company’s claims of reduced industrial demand causing higher losses were dismissed by Nepra, which stated Fesco “manipulated bills to conceal inefficiencies” and lacked adequate justification.
Qesco’s Persistent Inefficiency Draws Nepra’s Ire
Quetta Electric Supply Company (Qesco) received a Rs. 40 million fine for persistent inefficiency, poor recoveries, and its inability to curb T&D losses. Qesco’s explanations, citing non-payment of agricultural subsidies and law-and-order issues in Balochistan, were rejected by Nepra as “unconvincing and repetitive.” The regulator noted that Qesco “failed to plan investments or improve recovery strategies despite repeated support through federal programs,” a point also highlighted by SindhNews.com.
The National Electric Power Regulatory Authority has directed all three utilities to deposit the fines within 15 days. Non-payment, Nepra warned, could lead to recovery through arrears of land revenue and further legal action. This recent enforcement by Nepra signals a firm stance against consumer exploitation and operational negligence in the country’s power sector.
Conclusion
Nepra’s stringent penalties serve as a clear directive to state-run power companies: accountability, consumer service, and efficient operations are paramount. These fines underscore the regulator’s commitment to ensuring fair practices and improving the overall performance of Pakistan’s electricity distribution network. The action taken aims to safeguard consumer interests and enforce transparency within the energy sector.