Audit Reveals Rs 277 Billion Hidden Losses by Pakistan Power Companies

The government’s latest audit report has revealed a shocking discovery — power distribution companies in Pakistan have quietly added another massive burden of Rs 277 billion in hidden losses. This news comes just after a previous audit showed that the same companies had overbilled consumers by Rs 244 billion during the 2023–24 fiscal year. Together, these findings highlight deep-rooted problems in the country’s electricity sector.

According to the audit by the Auditor General of Pakistan (AGP), eight major electricity distribution companies (Discos) — including LESCO, MEPCO, QESCO, HESCO, IESCO, PESCO, SEPCO, and TESCO — were involved in large-scale overbilling and hiding technical losses. These actions were not accidental but a calculated effort to make their financial performance appear better while passing the burden onto ordinary electricity consumers.

In one of the most shocking cases, QESCO reportedly overcharged tube-well users by Rs 148 billion. Across various companies, fake unit entries, load adjustments, and inflated meter readings were used to disguise electricity theft and inefficiencies. These practices not only misled the government but directly harmed households and businesses already struggling with the rising cost of electricity in Pakistan.

To make matters worse, audit teams were often denied access to internal records. This refusal to cooperate further confirmed that officials were trying to hide more than what was initially uncovered. Despite the serious nature of these revelations, no disciplinary action has been reported against those responsible.

Although some refunds were processed — around Rs 5.29 billion for wrong meter readings and Rs 2.18 billion by PESCO — the reality is that millions of overbilled users have not received any compensation. Many Pakistanis are still paying for electricity they never actually used, and the current system offers them little hope for justice.

Adding to the crisis, capacity charges — payments made to private power plants even when electricity isn’t being used — have risen dramatically. These charges increased by almost 900% over the last decade, from Rs 141 billion in 2015 to over Rs 1.4 trillion in 2024. These hidden costs are also being passed down to consumers through inflated monthly bills.

What’s truly concerning is the complete lack of accountability. Despite uncovering billions in irregularities, there have been no arrests, no firings, and no visible signs of reform. The Public Accounts Committee (PAC) is expected to review the audit report, and while some lawmakers have expressed concern, many fear that like past scandals, this too may quietly fade away.

For the average citizen, this is more than just numbers on paper — it’s a monthly struggle to understand electricity bills, cope with unfair charges, and pay for a service that’s riddled with inefficiencies. With rising fuel imports, outdated infrastructure, and mismanagement at every level, the country’s energy crisis is growing worse.

Without immediate reforms, strict oversight, and public transparency, these problems will only deepen. The hope is that this audit will finally push decision-makers into action — but history suggests otherwise. As it stands, Pakistan’s electricity consumers are once again being made to pay the price for a broken system.

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