ISLAMABAD: The Auditor General of Pakistan (AGP) has accused the Tariff & Subsidy Wing of the Ministry of Energy (Power Division) of failing to ensure proper scrutiny of subsidy claims through commercial auditors and allowing power distribution companies (DISCOs) to revise detection bills in violation of prescribed procedures.
In its Audit Report for 2025-26, the AGP noted that during the audit of the Power Division for the financial year 2023-24, DISCOs issued detection bills to residential consumers in category A1 (above 700 units) and subsequently granted credit adjustments in the same month exceeding the originally billed units.
According to the audit, available data indicated that abnormal adjustments were extended to consumers. These figures were also included in Tariff Differential Subsidy (TDS) claims submitted by DISCOs to the Ministry of Energy.
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The report observed that the Tariff & Subsidy Wing failed to ensure proper verification of subsidy claims through commercial auditors and permitted revision of detection bills in breach of established procedures.
As a result, during FY 2023-24, against 12.075 million kWh debited, 14.889 million kWh were credited to Residential-A1 consumers, leading to excess credit adjustments. This resulted in an undue financial burden of Rs 683.708 million on the national exchequer.
The audit further highlighted that non-adherence to subsidy verification standard operating procedures (SOPs) caused a loss of Rs 683.708 million due to excessive credit adjustments in the processing of TDS claims.
The matter was taken up with the management in May 2025 and reported to the Ministry in September 2025. The management responded that the situation would be reviewed, adding that such adjustments were a common practice and were typically reconciled in subsequent months.
The Departmental Accounts Committee (DAC), in its meeting held on February 23, 2026, directed the management to provide a detailed reply with proper justification within one month and to have the record verified by audit with supporting documentary evidence. However, no further progress was reported until the finalisation of the audit report.
The AGP has recommended that the matter be justified with complete documentary evidence.
Copyright Business Recorder, 2026
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