The government claims of recoveries of outstanding electricity bills have turned out to be mere crumbs since the power distribution companies (Discos) cannot recover nearly 480 billion rupees of charge back from chronic defaulters as per the audit report by the Auditor General of Pakistan for the previous fiscal year, 2024-25.
In the report, it was noted that recovery of your due electricity bills is a big challenge to Discos. It also showed that dues of 476,488 defaulters have not been paid and this increases the financial pressure in the power sector that is already not doing so great.
Outstanding electricity arrears have increased by Rs. 828 billion in the past six years, said the audit. The amount of unpaid bills increased to 2,017 billion in 2024 up by 1bbs 1,189 billion in the year 2021-22. The report also observed a sharp increase in non-recoveries in 2021-22 where arrears jumped by Rs. 341 billion in a one-year period.
Read more: Govt Applies Essential Services Act in DISCOs
In 2022-23, the amount had increased again by Rs. 197 billion and continued to add to the burden with 2023-24 increasing the amount by another Rs. 290 billion. The audit noted an increase in the total dues outstanding in the recoverable category to 1,530 billion in 2021-22 against 1,189 billion in the previous year, showing a rising inefficiency in the process of getting payments.
Finally, the report highlights that, Discos still struggle to recover Rs. 480 billion, raising serious concerns with regard to recovery efforts by the government and further complicating the financial issues in the power sector.
