DURING a recent meeting of the National Assembly’s Public Accounts Committee (PAC), it was disclosed that electricity distribution companies have been resorting to massive overbilling in an attempt to conceal their financial losses and corruption, unfairly burdening their consumers with thousands of totally unconsumed electricity units.
The detailed audit report revealed that overbilling amounting to over Rs1.06 billion had occurred in Hyderabad Electric Supply Company (Hesco) alone. It further stated that consumers who fail to identify overbilling are not refunded the excess amounts charged to them. One senator observed that electricity consumers have been pushed to desperation, with some even committing suicide due to unbearable electricity charges. He questioned how it could be possible for a domestic consumer to legitimately consume 3,200 electricity units in a single month.
The PAC was also informed that around 40,000 audit paragraphs relating to power companies are still pending, involving financial irregularities worth billions of rupees. One glaring example concerns the Jamshoro Power Plant, where a contract for the purchase of 200,000 metric tonnes of coal worth approximately Rs10 billion was awarded in violation of procurement laws and the Public Procurement Regulatory Authority (PPRA) rules.
Although the market price of coal was around Rs38,000 per tonne at the time, it was allegedly purchased at Rs50,000 per tonne. The inquiry into the matter has reportedly remained stalled for over six months.
A significant portion of the country’s financial resources is spent on supporting these electricity companies, but consumers receive neither affordable electricity nor reliable supply. Rural feeders remain shut for days, while even major cities continue to experience loadshedding lasting over 12 hours daily. Despite all this, electricity bills continue to rise.
Equally disturbing happens to be the rather complete absence of a transparent and effective mechanism for correcting excessive or wrongful electricity bills. Consumers who receive inflated or detection bills have no choice but to pay them in full or seek instalments. Although complaints may be filed, the process often takes several uncertain months.
The relevant standing committees of parliament should require every electricity company to establish an effective, transparent and time-bound mechanism for correcting excessive bills. The companies should introduce comprehensive online services. Consumers should be able to apply for new connections, temporarily disconnect services, submit billing complaints, and track their cases electronically.
Over the years, several government-owned gas-fired power stations capable of producing relatively inexpensive electricity were shut down, while thousands of employees were declared surplus. These closures largely facilitated the purchase of expensive electricity from independent power producers (IPPs) under long-term contracts.
The government should reconsider all these arrangements and revive efficient public-sector power plants to ensure affordable electricity. Without affordable electricity, Pakistan cannot achieve sustainable industrial growth, agricultural expansion or commercial development.
Equally essential is the elimination of corruption, commission-taking and extortion within electricity distribution companies. If the government genuinely demonstrates the requisite political will, billions of rupees that are currently spent subsidising inefficient electricity companies could instead be invested in efforts to reduce poverty, unemployment and inflation.
Tariq Majeed
Hyderabad
Published in Dawn, August 22nd, 2026
