The National Electric Power Regulatory Authority (NEPRA) expressed surprise and dismay regarding the professional competence and management practices of the top officials of Distribution Companies (DISCOs).
This situation arose during a public hearing on the Multi-Year Tariff (MYT) application submitted by the Sukkur Electric Power Company (SEPCO) for the determination of its distribution and supply tariff for the fiscal years 2025-26 to 2029-30. The hearing took a stern turn when issues related to electricity theft, outstanding dues, and detection bills were discussed.
SEPCO’s Chief Executive Officer (CEO), Aijaz Ahmed Channa, admitted that detection bills are being issued in rural areas to consumers illegally using electricity via ‘kunda’ (illegal hook) connections, despite their original connections or meters having been disconnected.
A NEPRA official highlighted that 86,000 SEPCO meters are defective, with 31,000 being faulty for less than a year and 11,000 for over a year. He noted that these consumers are being sent average bills, although the SEPCO CEO claimed that all defective meters were replaced in the recent billing cycle. However, the NEPRA official refuted this statement, pointing out that out of PKR 4.6 billion in detection bills issued, only PKR 47 million had been recovered.
In the Rohri division, detection bills were sent to 50,000 out of 93,000 consumers, while a bill was also issued for a vacant plot in Sukkur with no electricity connection.
NEPRA Member (Development), Maqsood Anwar Khan, expressed outrage over the situation, suggesting that it appears SEPCO is running its own separate government. He noted that over 70% of the company’s consumers are without meters and are being sent estimated bills.
Member (Technical), Rafique Ahmad Sheikh, who himself belongs to Sindh, concurred, expressing helplessness by saying, “I do not understand which wall we should bang our heads against.”
Member (Law), Amna Ahmed, expressed disappointment, stating that the DISCOs’ officers do not understand their own system, which is why they failed to ask questions during the hearing.
Proposals for Net Metering
In its application, SEPCO proposed imposing a fixed charge of PKR 1,000 per kilowatt on net metering consumers to reduce the financial burden on the company and limit the cross-subsidy provided to lifeline consumers by ordinary consumers.
Faiqullah Dahri, the Acting CEO of Hyderabad Electric Supply Company (HESCO), presented two proposals to address net metering issues: the imposition of fixed network usage charges based on sanctioned load or export capacity, or the implementation of a gross metering framework to avoid cross-subsidies.
NEPRA also held a separate public hearing on the Multi-Year Tariff application of the Quetta Electric Supply Company (QESCO).
