ISLAMABAD: The Auditor General of Pakistan (AGP) has instructed the Hyderabad Electric Supply Company (HESCO) to immediately remove electricity meters of consumers who have failed to pay three consecutive monthly bills, in line with regulations set by the National Electric Power Regulatory Authority (Nepra).
Under Nepra’s Consumer Service Manual, if a consumer does not clear the third month’s bill — along with arrears from the previous two months — by the due date, the concerned distribution company (DISCO) is required to issue an Equipment Removal Order (ERO). The metering installation must then be removed and the connection assigned a permanently disconnected status.
Electricity supply can only be restored after full payment of outstanding dues, either in a lump sum or through approved installments, along with completion of all codal formalities under the reconnection policy. The manual also clarifies that if a DISCO fails to remove equipment for its own convenience, the consumer cannot be held responsible for any subsequent electricity theft or loss of material.
During the audit of HESCO’s Chief Executive Officer for the financial year 2024–25, it was revealed that as of June 30, 2025, a total of 400,420 consumers across various tariff categories had defaulted on payments amounting to Rs 148.3 billion. Although EROs had been issued to enforce recovery and disconnect defaulting consumers, these orders were not implemented.
The issue was taken up with HESCO management in November 2025. In response, the management stated that recoveries worth Rs 398.6 million had been made between July and December 2025 across all tariff categories. It added that special recovery campaigns were underway and disconnection notices had been issued. However, the EROs remained pending.
Audit authorities observed that the failure to implement EROs reflected weak recovery enforcement and inadequate internal controls for monitoring defaulters. The continued presence of electrical installations at the premises of chronic defaulters exposed the company to unauthorized consumption, possible theft of electricity and equipment, and further accumulation of arrears.
The matter was also discussed in a meeting of the Departmental Accounts Committee (DAC) held on January 16, 2026, which directed HESCO management to submit a revised reply supported by documentary evidence.
The audit has recommended immediate implementation of all pending EROs, strengthening of recovery monitoring mechanisms, and fixing responsibility on concerned officers for non-compliance to prevent recurrence of such lapses.
Story by Mushtaq Ghumman
