ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday imposed a fine of Rs248 million on Gujranwala Electric Power Company (Gepco) and Sukkur Electric Power Company (Sepco) for overbilling based on faulty meters and loadshedding on commercial grounds, in violation of laws and regulations.
In two separate orders issued after proceedings spanning over three years, the regulator imposed Rs200m on Gepco for overbilling consumers on the pretext of slow meters and Rs48m on Sepco for disrupting power supply to consumers based on aggregate technical and commercial (ATC) losses — an illegal practice.
Nepra said it had initiated proceedings against Gepco in August 2022, following complaints from 1,298 consumers regarding overbilling for a prolonged period, allegedly due to slow meters. The matter proceeded through investigations, a show-cause hearing, and other proceedings.
“Keeping in view the submissions of Gepco, the evidence available on record, provisions of relevant laws and applicable documents, the authority rejects the response of Gepco… and imposed a fine of Rs200m,” it said.
It directed Gepco to immediately refund or adjust all the bills charged to the affected 1,298 consumers over and above two billing cycles on account of slowness of energy meters, as was confirmed by Gepco’s own report of Sept 9, 2022 within 30 days of receipt of this order, failing which an additional fine of Rs100,000 per day shall be imposed for continued violation.
Gepco fined Rs200m for overbilling and Sepco Rs48m for loadshedding
It said Gepco had charged consumers heavily through ‘detection bills’ on account of the slowness of energy meters for more than two billing cycles, with effect from January 1, 2021. The Gepco report, confirmed on September 9, 2022, stated that 1,298 consumers were charged detection bills due to slowness, in violation of the relevant provisions of the Consumer Service Manual (CSM).
Nepra had earlier directed Gepco in February 2023 to adjust the supplementary bills issued due to the slowness of energy meters for more than two billing cycles in future billing of the affected consumers, which was not implemented.
“Charging of supplementary bills on account of slowness for more than two billing cycles is blatant disregard of relevant provisions of CSM and has also caused serious harm to the reputation of licensee and unwarranted financial burden on the affected consumers,” Nepra held, adding that Gepco failed to comply with directions of the regulator for revision of supplementary bills charged on account of slowness of metering equipment in violation of provisions of CSM.
Illegal loadshedding
On the other hand, it imposed about Rs48m at the rate of Rs100,000 per day since April 4, 2024, on Sepco when it was directed by Nepra to stop ATC-based loadshedding for being illegal and against the regulations.
Sepco took the position on record that the ATC-based loadshedding was started in March 2014 upon the directions of the Ministry of Energy and the categories or slabs of the losses were defined by a subsidiary of the said ministry.
Nepra finally rejected Sepco’s position and directed it to “immediately cease and refrain from continuing AT&C-based load shedding in contravention of the Authority’s directives and the applicable legal framework”. Furthermore, the regulator also imposed a fine of Rs 100,000 per day on Sepco for each day of persistent contravention, effective from the date of Nepra’s original order dated April 4, 2024, until the violation is rectified. It asked Sepco to deposit the fine within 15 days.
“Failure to comply shall entail recovery of the outstanding amount under Section 41 of the Nepra Act as arrears of land revenue or through any other appropriate legal means, in addition to any further legal action.
The regulator observed that Sepco had been violating its own so-called AT&C policy and carrying out excessive load shedding as compared to the scheduled one. Moreover, a few feeders were randomly selected. It was observed that Sepco had failed to make improvements in the technical and financial health of those feeders over the last four years despite allowing colossal amounts under the O&M head by Nepra and continuing their operations in the status quo, due to which, even good-paying consumers were suffering a lot.
