K-Electric fined Rs10m over last-year’s performance
NEPRA says company failed to provide uninterrupted power in June 2015
The regulator also directed K-Electric to complete all indicated investment plans within the timelines and file quarterly reports. In case of failure, the regulator would take further punitive actions under Section 28 of the Nepra Act. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) on Friday imposed a Rs10-million fine on K-Electric for failure to provide uninterrupted power supply to consumers and deliberate underutilisation of its generation capacity in June last year.
The regulator penalised the power company after 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.
Post-privatisation: Government to review K-Electric’s 2008 agreement
Consumers of K-Electric had complained about extended periods of power outages, system failures and supply breakdowns.
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.”
It further says “in respect of underutilisation of its available generation capacity, the authority hereby has imposed a fine of Rs5 million to be paid by K-Electric within 30 days of issuance of this decision. If K-Electric continues with the practice of reducing or underutilisation of its generation capacity, strict punitive action will be taken against it in future.”
Nepra directed K-Electric to provide electricity to all consumers without any discrimination who met the consumer eligibility criteria and were neither defaulters nor involved in theft of electricity.
MPAs in Sindh demand FIR registration against K-electric
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.
The regulator also directed K-Electric to complete all indicated investment plans within the timelines and file quarterly reports. In case of failure to follow the instructions and non-implementation of the committed investment plans, Nepra said it would be constrained to take further punitive actions under Section 28 of the Nepra Act.
Published in The Express Tribune, March 26th, 2016.
The National Electric Power Regulatory Authority (Nepra) on Friday imposed a Rs10-million fine on K-Electric for failure to provide uninterrupted power supply to consumers and deliberate underutilisation of its generation capacity in June last year.
The regulator penalised the power company after 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.
Post-privatisation: Government to review K-Electric’s 2008 agreement
Consumers of K-Electric had complained about extended periods of power outages, system failures and supply breakdowns.
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.”
It further says “in respect of underutilisation of its available generation capacity, the authority hereby has imposed a fine of Rs5 million to be paid by K-Electric within 30 days of issuance of this decision. If K-Electric continues with the practice of reducing or underutilisation of its generation capacity, strict punitive action will be taken against it in future.”
Nepra directed K-Electric to provide electricity to all consumers without any discrimination who met the consumer eligibility criteria and were neither defaulters nor involved in theft of electricity.
MPAs in Sindh demand FIR registration against K-electric
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.
The regulator also directed K-Electric to complete all indicated investment plans within the timelines and file quarterly reports. In case of failure to follow the instructions and non-implementation of the committed investment plans, Nepra said it would be constrained to take further punitive actions under Section 28 of the Nepra Act.
Published in The Express Tribune, March 26th, 2016.