ISLAMABAD: The Auditor General of Pakistan (AGP) has directed the Hyderabad Electric Supply Company (HESCO) to remove electricity meters of consumers who have defaulted on three consecutive monthly bills, in accordance with NEPRA regulations.
According to Nepra’s Consumer Service Manual, if a consumer fails to pay the third month’s bill along with arrears of the previous two months within the due date specified on the third bill, the concerned distribution company (DISCO) must issue an Equipment Removal Order (ERO), remove the metering installation, and assign a permanently disconnected code.
Electricity supply can only be restored after full payment of outstanding dues — either in lump sum or installments — and completion of other codal formalities under the reconnection policy.
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The manual further states that if a DISCO does not remove the equipment for its own convenience, the consumer shall not be held responsible for any theft of electricity or material thereafter.
During the audit of the Chief Executive Officer, Hyderabad Electric Supply Company (HESCO), for the financial year 2024–25, it was observed that 400,420 consumers across various tariff categories had defaulted on energy payments amounting to Rs 148.3 billion as of June 30, 2025. Although Equipment Removal Orders (EROs) were issued for recovery enforcement and disconnection of the defaulting consumers, these orders were not implemented.
The matter was taken up with management in November 2025. The management responded that recoveries amounting to Rs 398.6 million had been made from July to December 2025 across all tariff categories. It added that recovery efforts were being intensified through special campaigns and that disconnection notices had been issued; however, the EROs remained unimplemented.
Audit observed that the non-implementation of EROs reflected weak recovery enforcement and inadequate internal controls over monitoring of defaulting consumers.
The failure to remove electrical installations from the premises of chronic defaulters exposed the company to continued unauthorized consumption, possible theft of electricity and equipment, and further accumulation of arrears.
The Departmental Accounts Committee (DAC), in its meeting held on January 16, 2026, directed the management to submit a revised reply along with documentary evidence to the Audit.
The Audit recommended immediate implementation of all pending EROs, strengthening of recovery monitoring mechanisms, and fixation of responsibility on the concerned officers for non-compliance to prevent recurrence of such lapses.
Copyright Business Recorder, 2026
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