Nepra slaps Rs141m fines on three power distribution companies

The National Electric Power Regulatory Authority (NEPRA) has imposed fines worth Rs141 million on three ex-WAPDA power distribution companies (Discos) for overbilling, inflated loss reporting, violation of earthing/grounding regulations and failure to improve recoveries during the fiscal year (FY2023–24, 24NewsHD TV channel reported on Wednesday. 

As per the NEPRA orders, the fine has been imposed on Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO), and Quetta Electric Supply Company (QESCO). On Gujranwala Electric Power Company (GEPCO), fines worth Rs91 million were imposed on account of two different violations.

In the first order, the regulator found that Gujranwala Electric Power Company (GEPCO) had engaged in overbilling practices to artificially manage its transmission and distribution (T&D) losses, which rose to 11.48 percent in FY2023–24 against NEPRA’s target of 9 percent. NEPRA said the company acknowledged the allegations and admitted to violations of the NEPRA Act and Consumer Service Manual. 

The authority noted that GEPCO’s overbilling “affected millions of consumers” and that the company was later directed to reimburse overcharged units, an action that caused a temporary spike in its loss ratio. Calling the practice a “clear and serious violation” of regulatory standards, NEPRA imposed a fine of Rs50 million and gave GEPCO 15 days to deposit the amount.

In a separate case, GEPCO was also fined Rs100,000 per day for continuous non-compliance with NEPRA’s earlier order requiring 100 percent earthing of HT/LT structures within its network. 

Its decision said after due deliberations and taking into account the submissions/arguments made by the licensee and other applicable documents, the authority is of the considered opinion that the licensee has failed to provide any satisfactory reply to the show-cause notice served to it, therefore, the authority decided to impose a fine amounting to Rs100,000 on the licensee for every day on continued contravention. 

Meanwhile, Faisalabad Electric Supply Company (FESCO) was fined Rs10 million for what NEPRA described as deliberate overbilling and failure to reduce T&D losses in FY2023–24. FESCO attributed the increase in losses to reduced industrial consumption, but NEPRA dismissed the justification, saying the company “manipulated bills to conceal operational inefficiencies.” NEPRA observed that FESCO’s explanations—citing COVID-19, import restrictions, and project delays—did not align with ground realities. “Each financial year must stand on its own. Attempts to offset past losses with current performance are irrelevant,” the order stated. 

In Quetta Electric Supply Company’s (QESCO) case, the regulator imposed a Rs40 million fine for persistent inefficiency, poor recoveries, and failure to curb T&D losses. QESCO blamed non-payment of agricultural subsidies and law-and-order issues in Balochistan for its weak performance, but NEPRA rejected the arguments as “unconvincing and repetitive.” 

Reporter: Awais Kiyani