NEPRA imposes Rs9m fine on two power companies
Regulator says Hyderabad and Lahore’s DISCOs have failed to control load-shedding
PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) has imposed a combined fine amounting to Rs9 million on two power distribution companies (Discos), Lahore Electric Supply Company (Lesco) and Hyderabad Electric Supply Company (Hesco), over prolonged power outages.
According to a statement issued by the power regulator, Nepra imposed a fine of Rs5 million on HESCO and Rs4 million on Lesco under Nepra Fine Rules due to non-compliance of performance standards, distribution code, distribution license. It said the two companies failed to restore the power supply within prescribed time, did not provide proper voltage level (poor quality of supply), and could not reduce the overloading of power transformers.
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The regulator said the companies also did not utilise the amounts/funds and also failed to provide correct information regarding interruptions, duration of interruptions and number of complaints.
In July and August, 2016, the Nepra team visited different areas of HESCO and Lesco, conducted survey of consumers and inspected record and log books of 132, 66 and 11 kV Grid Stations. The team noted that contrary to the stated claims by the officials at the top, consumers are being subjected to prolonged un-scheduled electricity outages of more than 16 hours and 14 hours in a number of areas of Hesco and Lesco, respectively.
It was also observed that transmission system constraint is also one of the reasons of unscheduled power cuts as the system has no sufficient capacity to carry out maximum load (demand) of country, subsequently; consumers are suffering due to voltage fluctuations. The voltages being received by the consumers are even below than 180V, causing damage to home appliances.
The consumers told the Nepra team that supply to their areas is not restored even after days of fault occurrence. The team also noted that damaged transformers have not been replaced in a reasonable time although all other formalities have been completed by consumers. Due to the poor maintenance of distribution system ultimately, consumers are facing frequent power cuts.
It was noted with serious concerns that despite the weak distribution system, HESCO could not utilise the allocated funds, for upkeep and maintenance of the system.
Based on the findings, a detailed report was submitted by the Nepra team, on which the Authority while showing serious concerns, and decided to initiate legal proceedings.
NEPRA urged to undo cut in K-Electric’s multi-year tariff
Fine exposes Pakistan’s power sector
The regulator’s ruling puts a question mark on the government’s reforms process. One of the salient features of the IMF programme was to either privatise power sector companies or complete their reforms process that would see them perform more efficiently.
However, four years on, DISCOs continue to face issues with prolonged load-shedding and a poor transmission network adding to the woes of the public.
Published in The Express Tribune, July 28th, 2017.
The National Electric Power Regulatory Authority (Nepra) has imposed a combined fine amounting to Rs9 million on two power distribution companies (Discos), Lahore Electric Supply Company (Lesco) and Hyderabad Electric Supply Company (Hesco), over prolonged power outages.
According to a statement issued by the power regulator, Nepra imposed a fine of Rs5 million on HESCO and Rs4 million on Lesco under Nepra Fine Rules due to non-compliance of performance standards, distribution code, distribution license. It said the two companies failed to restore the power supply within prescribed time, did not provide proper voltage level (poor quality of supply), and could not reduce the overloading of power transformers.
NEPRA approves Rs2.6b refund for consumers
The regulator said the companies also did not utilise the amounts/funds and also failed to provide correct information regarding interruptions, duration of interruptions and number of complaints.
In July and August, 2016, the Nepra team visited different areas of HESCO and Lesco, conducted survey of consumers and inspected record and log books of 132, 66 and 11 kV Grid Stations. The team noted that contrary to the stated claims by the officials at the top, consumers are being subjected to prolonged un-scheduled electricity outages of more than 16 hours and 14 hours in a number of areas of Hesco and Lesco, respectively.
It was also observed that transmission system constraint is also one of the reasons of unscheduled power cuts as the system has no sufficient capacity to carry out maximum load (demand) of country, subsequently; consumers are suffering due to voltage fluctuations. The voltages being received by the consumers are even below than 180V, causing damage to home appliances.
The consumers told the Nepra team that supply to their areas is not restored even after days of fault occurrence. The team also noted that damaged transformers have not been replaced in a reasonable time although all other formalities have been completed by consumers. Due to the poor maintenance of distribution system ultimately, consumers are facing frequent power cuts.
It was noted with serious concerns that despite the weak distribution system, HESCO could not utilise the allocated funds, for upkeep and maintenance of the system.
Based on the findings, a detailed report was submitted by the Nepra team, on which the Authority while showing serious concerns, and decided to initiate legal proceedings.
NEPRA urged to undo cut in K-Electric’s multi-year tariff
Fine exposes Pakistan’s power sector
The regulator’s ruling puts a question mark on the government’s reforms process. One of the salient features of the IMF programme was to either privatise power sector companies or complete their reforms process that would see them perform more efficiently.
However, four years on, DISCOs continue to face issues with prolonged load-shedding and a poor transmission network adding to the woes of the public.
Published in The Express Tribune, July 28th, 2017.