ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Friday imposed a fine of Rs10 million on K-electric for failure to provide uninterrupted electric power services to its consumers and deliberately under utilizing its available generation capacity.
Earlier, in June 2015, extended hours of load shedding, system failures and power supply breakdowns were noted in the service territory of K-Electric, resulting in serious complaints by the consumers of K-Electric, said a press release.
The authority constituted a fact-finding committee to collect necessary information and submit a report of its findings. After considering the recommendations and information submitted by the Committee, the Authority issued a Show Cause notice to KE.
KE was given reasonable opportunity to respond and after hearing and considering the response and the comprehensive investment plan submitted by KE, the Authority passed following decision;
- In respect of failure to provide uninterrupted electric power services and restore the power of affected consumers within reasonable time, the Authority hereby impose a fine of Rs 5 (Five) Million to be paid by KE within thirty days of issuance of this decision.
- In respect of underutilization of its available generation capacity, the Authority hereby impose a fine of Rs5 (Five) Million to be paid by KE within thirty days of issuance of this decision. If KE continues with the practice of reducing or underutilizing its generation capacity, strict punitive action will be taken against it in future.
iii. In respect of failure to provide electric power services to all consumers on non-discriminatory basis, the Authority directs KE to provide electric power services to all consumers without any discrimination who meets the consumer eligibility criteria and are neither defaulters nor involved in theft of electricity.
Regarding overloading, tripping and other distribution and transmission failures, the Authority took serious notice of failure of KE to properly maintain and upgrade its distribution and transmission system however considering the commitment of KE to improve its system and investment plan of around 400 million dollars decided to provide an opportunity to KE to increase its generation capacity and improve its transmission and distribution system strictly in accordance with the investment plans submitted by it.
The Authority also directed KE to complete all indicated investment plans within the timelines and file quarterly reports to the Authority.
The Authority further decided that in case of failure of KE to follow instructions/directions of the Authority and non-implementation of committed investment plans, the Authority will be constrained to take further punitive actions under section 28 of NEPRA Act.