Nepra Fines Power Companies Rs1.96 Billion for Safety Violations

In a significant move aimed at ensuring accountability within the power sector, the National Electric Power Regulatory Authority (NEPRA) has imposed hefty fines totaling Rs1.96 billion on various power generation, transmission, and distribution companies. This action comes in response to a series of fatal accidents and a consistent pattern of non-compliance with NEPRA's established rules, regulations, and standards.

Since the fiscal year 2016-17, NEPRA has taken a firm stance against power companies that fail to adhere to safety and operational protocols. The fines are categorized as follows: Rs749.5 million has been levied against generation licensees, Rs56 million against transmission licensees, and a staggering Rs1.149 billion against distribution licensees. This reflects a growing concern over the safety and reliability of power services in Pakistan.

Among the companies facing penalties, GENCO-I has been fined Rs11 million, while GENCO-II and GENCO-III have received fines of Rs261 million and Rs35.05 million, respectively. The National Transmission and Dispatch Company (NTDC) was fined Rs62 million, and the Central Power Purchasing Agency-Guaranteed (CPPA-G) faced a penalty of Rs120 million. K-Electric, a major player in the distribution sector, was fined Rs20 million, along with several other companies, including Balloki, UCH-II, and KAPCO, each receiving Rs10 million.

Notably, K-Electric has been under scrutiny for its role in multiple fatalities. The company was fined Rs160 million for excessive unannounced loadshedding in Karachi during a critical period in 2020, as well as Rs50 million for fatal accidents that occurred during the monsoon rains in 2019. In total, K-Electric is linked to 19 out of 35 fatalities reported during these incidents.

Other companies also faced significant fines. PESCO was fined Rs139 million for various infractions, including non-utilization of power quotas and fatal accidents. LESCO received a Rs90 million fine for similar issues, including poor quality of supply. GEPCO, HESCO, SEPCO, FESCO, and IESCO were also penalized for their failures to maintain safety standards and provide reliable service.

The imposition of these fines underscores NEPRA's commitment to enforcing compliance and ensuring that power companies prioritize safety and reliability. The regulatory authority's actions serve as a reminder that negligence in the power sector can have dire consequences, not only for the companies involved but also for the communities they serve.

As Pakistan continues to grapple with energy challenges, the need for stringent oversight and accountability in the power sector has never been more critical. The fines imposed by NEPRA are a step towards fostering a culture of safety and responsibility among power companies, ultimately benefiting consumers and enhancing the overall reliability of the electricity supply in the country.