Nepra Fines 3 Power Companies Rs. 100 Million for Overbilling and Inefficiency

The National Electric Power Regulatory Authority (Nepra) has imposed fines totaling Rs. 100 million on three state-run power distribution companies  Gepco, Fesco, and Qesco for overbilling consumers, inflating losses, and failing to improve recoveries during the fiscal year 2023–24.

The penalties are part of Nepra’s ongoing drive to enforce accountability and transparency in Pakistan’s power sector, where consumer complaints about inflated bills and unjustified charges have surged in recent years.

According to Nepra’s findings, Gujranwala Electric Power Company (Gepco) deliberately manipulated meter readings to understate its transmission and distribution (T&D) losses, which reached 11.48%, exceeding the 9% regulatory limit. The company admitted to overbilling that “affected millions of consumers.”

“Such violations breach both the Nepra Act and the Consumer Service Manual,” the regulator stated.

Gepco was fined Rs. 50 million and given 15 days to pay. It also faces a daily penalty of Rs. 100,000 for failing to comply with Nepra’s earlier order on earthing of HT/LT structures.

Faisalabad Electric Supply Company (Fesco) was fined Rs. 10 million for deliberately overbilling and concealing inefficiencies. Nepra rejected Fesco’s justification of reduced industrial demand, stating the firm “manipulated bills to hide losses.”

Meanwhile, Quetta Electric Supply Company (Qesco) was penalized Rs. 40 million for poor recoveries, persistent inefficiency, and failure to curb T&D losses. Nepra dismissed Qesco’s reasoning that law-and-order issues and subsidy delays were to blame, calling them “unconvincing and repetitive.”

Nepra emphasized that these companies have long been aware of operational challenges but failed to plan investments or enhance recoveries, even with federal assistance. The regulator directed all three utilities to deposit the fines within 15 days, warning that non-compliance may result in legal recovery through land revenue arrears.

Energy experts note that the move signals Nepra’s intent to tighten oversight and protect consumers from unfair billing  a critical step toward improving efficiency in Pakistan’s struggling power distribution sector.