NEPRA Imposes Rs. 50 Million Fine on Power Generation Company
The National Electric Power Regulatory Authority (NEPRA) has imposed a hefty fine of Rs. 50 million on Central Power Generation Company Limited (CPGCL) for making false filings that influenced electricity rates for consumers.
The fine stems from actions taken by CPGCL’s Guddu Thermal Power Station, which procured a gas booster from Engro Corporation at no cost but subsequently included over Rs. 1.24 billion in tariff charges related to this procurement without disclosing the true nature of the transaction. According to reports from a national daily, NEPRA found that CPGCL failed to disclose that the gas booster compressor station (GBCS) was obtained free of charge, which should have been communicated to the relevant authorities.
Further complicating matters, the regulator noted that this acquisition was not cleared with the Economic Coordination Committee (ECC). CPGCL had claimed that it received ECC approval; however, NEPRA found no valid documentation to support this assertion.
In addition to the fine imposed on CPGCL, NEPRA has issued show-cause notices to the Central Power Purchasing Agency (CPPA) and the National Transmission and Despatch Company (NTDC) for violations related to signing operating procedures and black-start agreements with various power producers following the nationwide blackout in January 2021. These entities could face fines of up to Rs. 200 million for their infractions.
