Regulator fines PESCO, CPPA-G Rs10m each

Penalty imposed in the wake of failure to execute power purchase deal

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has slapped a fine of Rs10 million each on the Peshawar Electric Supply Company (Pesco) and Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) for their failure to execute a power purchase agreement with Pakhtunkhwa Energy Development Organisation for the 18-megawatt Pehur Hydel Power Project since March 1, 2010.



In legal proceedings, the regulator concluded that Pesco failed to execute the agreement over the past seven years and purchased electricity at rates not approved by Nepra, according to a statement issued on Tuesday.

During the legal process, the company could not provide any plausible reason for delay in the payment of dues. It also did not comply with the directives to provide information required by Nepra and disregarded a letter written in that respect.

Keeping in view the violations, Nepra declared Pesco as delinquent under Rule 4(13) of the Nepra (Fines) Rules 2002 and decided to impose a fine of Rs10 million on the company.

In the case of CPPA-G, the regulator noted that it was obligatory for the CPPA-G under the Nepra (Market Operator Registration, Standard and Procedure) Rules 2015 to purchase electricity on behalf of power distribution companies.



However, it could not meet the obligation and forced the power producer to agree on terms and conditions which were never approved by Nepra.

The regulator declared the CPPA-G as delinquent and imposed a penalty of Rs10m.

It was also decided that in case of failure to execute the power purchase agreement in the next three months, a fine of Rs500,000 per day would be imposed.

Published in The Express Tribune, November 29^th, 2017.

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