Power companies in Pakistan reportedly overcharged consumers by approximately Rs 244 billion over the past year as a way to mask mounting losses in the power sector. Audit findings suggest inflated billing practices helped utilities avoid declaring the full scale of financial shortfalls to regulators and the public.

ICAP auditors analyzed billing data across multiple regions and discovered that electricity bills included hidden surcharges and variable price adjustments. In several cases, tariffs applied in consumer invoices exceeded officially approved rates. This effectively funneled extra revenue into overage reserves rather than covering actual production or distribution costs.

The overbilling reportedly affected residential, commercial, and industrial consumers alike. While households saw modest increases, businesses (especially small and medium enterprises) faced substantial added costs. The concealed fees were presented as fallback measures to compensate distribution companies for circular debt and system inefficiencies.

Critics argue that this practice shifted financial burden to consumers without transparency or legal authorization. Consumer rights groups and political commentators called the findings alarming, saying that people were forced to shoulder utilities’ mismanagement while struggling with soaring inflation and energy shortages.

Defenders within the power sector say operational losses, circular debt exceeding Rs 3.6 trillion, and liquidity crises forced them to temporarily adjust billing rates. They argue it was a stopgap measure to maintain electricity supply and prevent outages or power cuts that could have broader economic impacts.

Nevertheless, public pressure is mounting for accountability. Watchdog groups are demanding full disclosure of overcharged amounts, refunded billing for affected customers, and systemic reform in tariff setting and oversight. Some lawmakers have pledged to bring the issue to parliament for review and potential legislative changes.