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Nepra imposes Rs 10m fine on K-Electric over poor performance

byCT Report
26/03/2016
in Business
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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a Rs10-million fine on K-Electric for failure to provide uninterrupted power supply to consumers when a deadly heat wave killed around 1,300 people in Karachi in June 2015.

It had also constituted a fact-finding committee to look into the power supply situation at that time in Karachi, gather necessary information and submit its findings. Consumers of K-Electric had complained about extended periods of power outages, system failures and supply breakdowns.

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After considering recommendations and findings of the committee, Nepra said it issued a show-cause notice to K-Electric and gave a reasonable opportunity to respond to the complaints.

After hearing and considering the response and the comprehensive investment plan submitted by the company, Nepra in its decision said “in respect of failure to provide uninterrupted electric power services and restore the electricity of affected consumers within a reasonable time, the authority hereby imposes a fine of Rs5 million to be paid by K-Electric within 30 days of issuance of this decision.”

Regarding overloading, tripping and other transmission and distribution failures, the regulator took serious notice of the failure of K-Electric to properly maintain and upgrade its transmission and distribution system.

However, considering the commitment of the company to improve its system and investment plan of around $400 million, Nepra decided to provide an opportunity to the company to increase its generation capacity and improve the transmission and distribution system strictly in accordance with the investment plan.

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