AGP asks FIA to halt LESCO overbilling probes
Auditor General has called for coordination with Nepra, citing violations of mandated consumer redressal procedures.
The Auditor General of Pakistan has asked the Federal Investigation Agency to refrain from initiating overbilling inquiries. It has urged prior technical validation and formal coordination with the National Electric Power Regulatory Authority and Provincial Offices of Inspection.
The auditors gave a directive in an audit para examining FIA anti-corruption inquiries into alleged overbilling at Lahore Electric Supply Company.AGP found that criminal proceedings were launched outside Nepra’s prescribed legal framework.
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The auditors have noted that the overbilling complaints fall primarily under Nepra’s jurisdiction, according to Sections 38 and 39 of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997.
These provisions require complaints to be handled through Provincial Offices of Inspection or Nepra’s Consumer Affairs Division, which calls for show-cause notices and hearings before enforcement action.
According to the audit, FIA had registered FIR No. 79/2024 alleging overbilling of 59.791 million electricity units in LESCO’s Shahpur Division.
The figure came from internal estimates by sub-divisional officers and lacked mandatory Metering and Testing verification, the audit found.
A subsequent review by LESCO’s technical committee, which was ordered by FIA in November 2024, concluded that the figures cited in the FIR were not backed by verified technical evidence. The committee also stated that most excess billing had been adjusted and the utility had not sustained actual revenue loss, though reputational damage was acknowledged.
The audit further observed that FIA had started multiple FIRs related to overbilling during 2024 without technical validation. FIA had merged them into a single inquiry, a move the audit said weakened evidentiary strength, delayed case finalisation, and compromised investigative independence.
Preliminary findings cited allegations of overbilling in a total of 835 million units across eight LESCO circles. LESCO had admitted that overbilling of 501 million units in three circles, with confirmed amounts of Rs 197.71 million and Rs 86.456 million in two areas. The inquiry had been stalled after officials from the remaining circles failed to respond to the summons.
The audit had attributed the irregularities to weak billing controls, non-compliance with Nepra-approved complaint procedures, and premature criminal action. It had warned that such practices erode consumer trust, duplicate regulatory processes, and delay redressal.
The Auditor General concluded that FIA proceedings were not aligned with the governing legal framework. It is recommended that future overbilling cases be processed strictly through Nepra-mandated mechanisms, with FIA involvement only after technical validation and regulatory coordination.