The recent audit report for the financial year 2022-23 unveiled various factors contributing to a rise in electricity bills and basic tariffs.
The factors included non-standard plants, permanent defaulters, capitation payment, and electricity theft.
During the mentioned financial year, distribution companies issued bills amounting to Rs 2,302 billion to consumers. However, they could only recover Rs 1,849 billion, leading to a substantial shortfall for the companies.
Electricity theft and non-recovery rate among distribution companies were identified as a major concern, with a staggering 60% rate. This resulted in losses amounting to Rs 136 billion, a significant increase compared to the previous financial year’s losses of Rs 91 billion.
Non-standard power plants were also identified as a contributor to the financial burden on consumers, with additional costs of Rs 41 billion.
The reliance on expensive imported fuel added to the burden on the exchequer, with an audit report revealing costs of Rs 126 billion due to rising fuel prices.
Permanent defaulters were found to be a significant factor in the increase in electricity bills, with defaulters worth Rs 1,000 billion in the power sector.
The ‘capitation payment’ system was highlighted as a cause of financial instability in the power sector, adding to the overall strain on distribution companies.
The audit report also raised questions about the effectiveness of the National Electric Power Regulatory Authority (NEPRA) controls. These challenges collectively resulted in increased electricity bills and a surge in the basic tariff for consumers.
Source: Pro Pakistani