The country''s two renowned audit firms have reportedly confirmed the charge levelled by electricity consumers that power Distribution Companies (Discos) overbilled consumers to the tune of billions of rupees in July 2014 by reducing tariff slabs and debt adjustment of units consumed in prior months, sources close to Managing Director National Transmission and Dispatch Company (NTDC) told Business Recorder from Lahore.
"We have received an interim audit report prepared by two audit firms and sent it to the federal government which is probably now on the desk of Prime Minister Nawaz Sharif," the sources added.
The Prime Minister had directed the Ministry of Water and Power to hire the services of renowned audit firms to audit overbilling, which brought the people out on streets in protest in various cities and towns.
According to sources, the total impact of tariff hike and incremental units sold was Rs 9.5 billion due to a tariff hike/reduction of slab benefit. However, one of the audit firms, M/s Anjum Asim Shahid Rahman, maintains that the impact of over billing was about Rs 3.5 billion. M/s RSM Avais Hyder Liaqat Nauman calculated over-billing at about Rs 2.4 billion.
These firms further disclosed that there was an 11 percent increase in units sold or billed to the consumers in July 2014 as compared to July 2013.
Though Prime Minister''s Special Assistant Dr Musadak Malik had claimed that tariff has increased by 33 per cent during the past one year; however, audit firms'' assessment is that the increase was not more than 10 per cent.
The report is expected to be presented to the federal cabinet specially convened to review the performance of different Ministries including the Ministry of Water and Power with negligible improvement in performance despite replacement of several Secretaries.
Audit firms further disclosed that Discos meter readers did not visit premises for meter reading due to which consumers were sent bills of more than one month, thus doubling the amount.
Though NTDC''s officials were not ready to offer comments on this issue on record, the impression given to Business Recorder was that the entire plan of over-billing was tailored by the Ministry of Water and Power in connivance with Finance Ministry and executed by Discos.
Overbilling occurred during the tenure of former Secretary Water and Power, Nargis Sethi, and her team. At present, new Additional Secretary in-charge, Younus Dagha- a BPS 21 officer - has taken over the Ministry. He is very close to Prime Minister''s Additional Secretary Fawad Hasan Fawad.
Dagha''s team members are also from powerful Pakistan Administrative Service (PAS) commonly known as District Management Group (DMG), but they are junior to those who were part of Sethi''s team. One Joint Secretary who joined the Ministry of Water and Power at the time of Raja Pervez Ashraf has retained his position in spite of the changes in Ministers and Secretaries.
Sources in NTDC further stated that the current increase of 30 paisa per unit in consumer end tariff has been approved by the Finance Minister.
Economic managers had agreed with the International Monetary Fund (IMF) to raise power tariff by seven per cent. However, a recent increase of 30 paisa per unit notified on October 16, 2014 does not meet this commitment which implies that Finance Ministry''s team which has reached Dubai for fourth/fifth IMF review would face tough questions.
Comments
Comments are closed.