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Regulator Cracks Down: Rs248m Penalty on Gepco & Sepco Over

The National Electric Power Regulatory Authority (Nepra) has imposed a collective penalty of Rs248 million on two power distribution companies for exploiting consumers and violating regulatory provisions. Gepco (Gujranwala Electric Power Company) was fined Rs200 million for overbilling on the pretext of “slow meters,” while Sepco (Sukkur Electric Power Company) faced a Rs48 million penalty for unlawfully suspending electricity supply to consumers based on aggregate technical and commercial (ATC) losses.Nepra noted that proceedings against Gepco began in August 2022 after 1,298 consumers lodged complaints of excessive billing. The regulator stated, “Keeping in view the submissions of Gepco, the evidence available on record, provisions relevant laws and applicable documents, the authority rejects the response of Gepco… and imposed a fine of Rs200m.”The authority further ordered Gepco to refund or adjust the wrongly charged bills within 30 days, warning that failure to comply would lead to an additional Rs100,000 daily fine. Investigations confirmed that consumers were billed heavily through “detection bills” for more than two billing cycles — a clear breach of the Consumer Service Manual (CSM).Despite Nepra’s earlier directives in February 2023 to rectify the issue, Gepco failed to comply. The regulator highlighted that such unlawful practices not only burdened consumers financially but also damaged the company’s credibility.Similarly, Sepco was penalized for cutting off electricity supply based on ATC losses, which Nepra termed an “illegal practice” that directly violated consumer rights.The decision signals Nepra’s commitment to holding power companies accountable for malpractice and ensuring consumer protection across Pakistan’s electricity.

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