NEPRA fines 3 generation companies Rs5m each
They failed to perform in line with set standards, says regulator
PHOTO: REUTERS
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs15 million on three public-sector power generation companies (Gencos) for failure to perform satisfactorily in the 2012-14 period.
According to a statement issued on Friday, the regulator slapped Rs5-million penalty each on Jamshoro Power Company Limited (Genco-I), Central Power Generation Company Limited (Genco-II) and Northern Power Generation Company Limited (Genco-III) under the Nepra (Fines) Rules 2002 for violating prescribed limits of auxiliary power consumption in the years 2012, 2013 and 2014.
Under the Nepra Performance Standards (Generation) Rules 2009, Genco-I, II and III submitted their quarterly performance reports for the three years containing data particularly pertaining to the reference capacity, planned/unplanned outage hours, availability factor, net capacity factor and net output factor.
After analysing the data, a comprehensive performance evaluation report was prepared that revealed that machinery of the Gencos consumed excess auxiliary power during the operation compared to the limits allowed in their respective generation licences.
“Power plants were consuming electric power for running their machines more than the allowed limits,” Nepra said.
It expressed concern over the performance of the Gencos and decided to initiate legal proceedings against them for failure to comply with the performance standards and the generation licence.
Later, Nepra issued explanation and show-cause notices to them. During hearings conducted by the regulator, according to the statement, representatives of the Gencos did not provide any satisfactory justification for exceeding the prescribed limits of auxiliary consumption.
Nepra observed that the Gencos had failed to carry out timely maintenance in order to ensure operation of their units/machinery in an efficient manner, which resulted in excess auxiliary consumption. As a result, the national exchequer suffered a financial loss.
Keeping that in view, the regulator imposed the fine of Rs5 million each on the three companies.
Published in The Express Tribune, January 20th, 2018.
The National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs15 million on three public-sector power generation companies (Gencos) for failure to perform satisfactorily in the 2012-14 period.
According to a statement issued on Friday, the regulator slapped Rs5-million penalty each on Jamshoro Power Company Limited (Genco-I), Central Power Generation Company Limited (Genco-II) and Northern Power Generation Company Limited (Genco-III) under the Nepra (Fines) Rules 2002 for violating prescribed limits of auxiliary power consumption in the years 2012, 2013 and 2014.
Under the Nepra Performance Standards (Generation) Rules 2009, Genco-I, II and III submitted their quarterly performance reports for the three years containing data particularly pertaining to the reference capacity, planned/unplanned outage hours, availability factor, net capacity factor and net output factor.
After analysing the data, a comprehensive performance evaluation report was prepared that revealed that machinery of the Gencos consumed excess auxiliary power during the operation compared to the limits allowed in their respective generation licences.
“Power plants were consuming electric power for running their machines more than the allowed limits,” Nepra said.
It expressed concern over the performance of the Gencos and decided to initiate legal proceedings against them for failure to comply with the performance standards and the generation licence.
Later, Nepra issued explanation and show-cause notices to them. During hearings conducted by the regulator, according to the statement, representatives of the Gencos did not provide any satisfactory justification for exceeding the prescribed limits of auxiliary consumption.
Nepra observed that the Gencos had failed to carry out timely maintenance in order to ensure operation of their units/machinery in an efficient manner, which resulted in excess auxiliary consumption. As a result, the national exchequer suffered a financial loss.
Keeping that in view, the regulator imposed the fine of Rs5 million each on the three companies.
Published in The Express Tribune, January 20th, 2018.