ISLAMABAD, Sept 13 — The National Electric Power Regulatory Authority (Nepra) has imposed a penalty of Rs248 million on two power distribution companies — Gujranwala Electric Power Company (Gepco) and Sukkur Electric Power Company (Sepco) — for overbilling and illegal load management practices.
Gujranwala Electric Power Company fined Rs200 million for overbilling, while Sukkur Electric Power Company faces Rs48 million penalty for illegal loadshedding based on ATC losses
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Key Highlights
- Gepco fined Rs200m for overbilling 1,298 consumers through faulty meter claims
- Sepco fined Rs48m for carrying out ATC-based load shedding, declared illegal by Nepra
- Gepco ordered to refund or adjust consumer bills within 30 days
- Additional daily fines to be imposed for non-compliance
- Nepra directs Sepco to immediately cease ATC-based load shedding
Gepco’s Overbilling Case
The fine against Gepco follows complaints from nearly 1,300 consumers who reported being overbilled due to slow meters. Nepra investigations confirmed that Gepco had been issuing “detection bills” beyond two billing cycles — a violation of the Consumer Service Manual (CSM).
Despite repeated directions in February 2023 to correct the supplementary bills, Gepco failed to comply. Nepra termed the practice a “blatant disregard” of regulations that caused undue financial burden and damaged the company’s reputation.
The regulator has now ordered Gepco to refund or adjust all excessive charges within 30 days, warning that a penalty of Rs100,000 per day will be imposed if the violation continues.
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Sepco’s Illegal Loadshedding
Nepra also imposed a Rs48m fine on Sepco for continuing aggregate technical and commercial (ATC) losses-based load shedding, even after being directed to stop in April 2024.
Sepco argued it was following the Ministry of Energy’s policy introduced in 2014. However, Nepra rejected this justification, ruling the practice as illegal and harmful for paying consumers.
The regulator directed Sepco to immediately cease ATC-based load shedding and warned that daily fines would continue until full compliance.
Regulator’s Warning
Nepra emphasized that both companies must comply with the directives in letter and spirit. Failure to do so would lead to further legal recovery under Section 41 of the Nepra Act.
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