LESCO Crisis: Overbilling, Theft, and Load-Shedding Issues
The situation is further complicated by the fact that over 140,000 theft cases and Rs 5.49 billion in fines have yet to restore consumer confidence, and load-shedding and voltage fluctuations have damaged appliances, with LESCO often unresponsive to formal complaints. The company must take concrete steps to address these issues and provide relief to consumers who are bearing the brunt of the crisis.
The Lahore Electric Supply Company (LESCO) is facing a severe crisis due to rampant overbilling, widespread electricity theft, and persistent load-shedding, resulting in over Rs 8.44 billion in overbilling in July-August 2023.
NEPRA discovered that LESCO deliberately overbilled customers by inflating billing cycles beyond 30 days to mask line losses. The company has been systematically delaying meter readings to boost invoices and strip users of lower tariff protections, prompting show-cause notices from regulators. Consumer complaints include sudden spikes in bills, inflated units charged despite solar systems, and unhelpful responses from LESCO's offices.
LESCO has announced a new policy to reduce costs for large commercial and industrial electricity consumers, simplifying the process by installing only one Advanced Metering Infrastructure (AMI) smart meter instead of two. This policy is expected to save consumers around Rs125,000 and encourage more consumers to transition to smart metering systems and renewable energy sources. However, the company has also imposed a ban on electricity bill installments until further notice to meet recovery targets set for June, which may exacerbate the situation for consumers who are already struggling with high bills.
The ban applies to all residential, commercial, and industrial consumers, and extensions for bill payments will be granted in accordance with NEPRA regulations. Consumers who fail to pay their current bills or have outstanding dues will have their electricity connections disconnected. LESCO has directed officials to recover any previous dues reflected in the bills and deposit the full amount of their June bills without exception.
The crisis facing LESCO is a complex issue that requires urgent attention from the company and regulatory authorities. While the new policy to reduce costs for commercial and industrial consumers is a step in the right direction, the ban on electricity bill installments may have unintended consequences for consumers who are already struggling with high bills. It is essential for LESCO to address the underlying issues of overbilling, electricity theft, and load-shedding to restore consumer confidence and ensure a stable and reliable electricity supply.