Power consumers: Minister, secretary come under harsh criticism over over-billing

Minister for Water and Power Khwaja Mohammad Asif and Secretary Water and Power Nargis Sethi came under severe criticism of an Economic Co-ordination Committee (ECC) of the Cabinet meeting over the issue of over-billing to electricity consumers.
Sources told Business Recorder that this was raised by Minister for Information and Broadcasting, Minister for Information Technology and Chairman Privatisation Commission of Pakistan during the ECC meeting. Ministers were quoted as stating that "there is restlessness among the masses due to over-billing by the Ministry of Water and Power".
They further reportedly stated "you haven't done well". Some participants reportedly accused some elements in the government including bureaucracy of creating problems for the government. The distribution companies have reportedly charged billions of rupees from electricity consumers on account of extra billing. The matter of over-billing also came under discussion during the Cabinet meeting and a statement issued after the meeting maintained that the Prime Minister took a serious notice of reports on over-billing of electricity bills during the last two months across the country and directed Ministry of Water and Power to redress genuine grievances of the consumers, if any. Nawaz Sharif also constituted a committee chaired by Adviser to the Prime Minister on Energy Mussadiq Malik tasked to submit its report within a week - a report that would be discussed in the next cabinet meeting.
An official of the Finance Ministry said the increase in electricity tariff was one of the primary issues during the fourth quarterly review mandated under the International Monetary Fund's (IMF) Extended Fund Facility (EFF). The IMF staff level mission sought an explanation from the government on how electricity subsidy could be limited to the budgeted allocation without a tariff increase. Pakistan has committed to the IMF that tariff adjustment is expected to reduce electricity subsidies to 0.5 percent of GDP in fiscal year 2014-15 but the plan to raise tariff by Rs 1.30 per unit has been put on hold by the Ministry of Water and Power due to concerns that the action would merely increase public support for Pakistan Tehreek-e-Insaf (PTI) and Pakistan Awami Tehreek (PAT) protests.
Sources in the Finance Ministry, however, acknowledge that there is no sign of improvement in power sector which is facing a greater challenge with respect to recoveries. The power sector recoveries continue to decline, which entail greater subsidies. They added that Ministry of Water and Power has been unable to reduce line losses and if there is any credence in allegations of over-billing then the Ministry of Water and Power's claim that it has brought down power sector payables to Rs 238 billion from Rs 300 billion lacks credibility.