Massive overcharging prompts the government to revert to the previous billing method

The federal government has decided to abolish the proportional electricity charging system and return to the previous charging method.

Sources revealed that electricity distribution companies had secretly implemented the pro-rata system since March, leading to widespread overcharging issues.

Last month, it was revealed that over 0.3 million electricity consumers were moved out of the protected category and had to pay inflated electricity bills in June due to a new pricing system introduced by distribution companies (DISCOs) on the orders of the Ministry of Power.

Reading New electricity tariffs: How much will your bill increase?

However, this new system resulted in consumers being charged additional units to complete the 30-day billing cycle, resulting in millions of consumers receiving average bills. Because of the additional units charged to the bills, 326,350 protected consumers had to pay double bills.

According to sources, the National Electricity Regulatory Authority (Nepra) had raised concerns over the implementation of the new pricing mechanism, but consultants associated with the Power Planning and Monitoring Corporation (PPMC) pressed the DISCOs to implement the system immediately.

The move prompted Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi to take immediate notice of the issue in June during a meeting on energy sector reforms and the solar-bending process.

In response to a wave of overcharging complaints, Naqvi issued strict instructions to all FIA managers to immediately address complaints of consumers using up to 200 units of electricity, APP reported.

“Excessive complaints and injustices faced by protected consumers must be addressed immediately,” Naqvi concluded.