Discos, KE domains: Nepra sets up panel to probe Jan-Jun overbilling

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has constituted an investigation committee to probe overbilling in the jurisdictions of Discos and K-Electric from January to June 2024 and manipulation of Maximum Demand Indicator (MDI) by the industry.

In June, 2024, the Prime Minister had directed Power Division to probe overbilling and manipulation of MDI by the industry, which requested Nepra to complete the task, conduct a forensic audit/inquiry and submit a report for onward submission to the Prime Minister’s Office.

Nepra, in its communication with Discos and Wapda, stated that it has come to the attention of the Authority through a letter of August 1, 2024 received from the Section Officer (DISCO-II, Power Division that electricity DISCOs are involved in over billing and the industrial sector is involved in manipulation of Maximum Demand Indicator.

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Accepting the request of Power Division, the Authority ordered initiation of an investigation under section 27A the Regulation of Generation, Transmission & Distribution of Electric Power Act (XL of1997).

In this regard, the Authority has constituted the following Investigation Committee to investigate the matter of overbilling for all consumer categories and MDI manipulation by industrial sector for the period from January to June 2024: (i) Lashkar Khan, Director Consumers Affairs Division (CAD); (ii) Hafiz Irfan Ahmed, Additional Director (M&E); (iii) Abdullah Malik, Assistant Director (Tariff); and (iv) concerned Nepra regional officials.

The Investigation Committee has been mandated to gather data and conduct onsite verifications if needed. For this purpose, the Investigation Committee may visit the offices of PITC, all DISCOs and KE, if required. The Investigation Committee shall submit its report to the Authority within one month, commencing from August 26, 2024.

NEPRA has directed all DISCOs, KE, and PITC to fully cooperate with the Investigating Committee with regards to the provision of necessary record/information. Failure to comply will result in appropriate action in accordance with applicable laws.

ToRs of Investigation Committee are as follows: (i) investigate the issue of overbilling by DISCOs for the period commencing from January, 2024 till June, 2024, including identifying instances of discrepancies and determining the extent of financial impact on all consumer categories; and (ii) investigate the manipulation of MDI by the industrial sector.

This involves analyzing records and practices to detect any irregularities or attempts to influence MDI readings that could affect tariff calculations and possible involvement of officers of DISCOs; (iii) conduct onsite inspection and field verifications as necessary, including visits to all DISCOs PITC and KE, to gather data and corroborate findings.

Ensure that data collected to establish violation of applicable documents; (iv) affix responsibility for any identified issues and determine the accountability of individuals or entities involved. Additionally, identify any violations of Nepra Rules and Regulations.

Applicable documents including any breaches of applicable laws and guidelines; and (v) prepare and submit a detailed report of findings, including evidence and recommendations, within one month from the date of notification of the Investigating Committee and submit the same for consideration of the Authority.

The report should address identified issues, propose corrective measures, and outline any additional steps required for resolution.

Copyright Business Recorder, 2024