Irregularities in RPPs: Power company told to fix responsibility

The Supreme Court has directed the Generation Company (Genco) to submit a report by January 13, determining who is responsible for committing irregularities in Guddu and Naudero-II rental power plants (RPPs).

The orders were issued by a three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry during the hearing of a suo motu case initiated on The Express Tribune’s story published on December 1, which detailed National Electric Power Regulatory Authority’s (Nepra) refusal to approve a fresh tariff for Naudero-II after discovering that the project’s equipment belonged to Guddu Rental Power Project.

On Tuesday, the counsel for Pakistan Electric Power Company (Pepco) and Water and Power Development Authority (Wapda) Khwaja Tariq Rahim could not appear before the court. However, Najamul Hassan Kazmi, the counsel for Nepra, pleaded that eight out of 18 rental power projects have already been cancelled while notices have been sent to two more companies to close their projects.

The chief justice observed that Wapda and Pepco should at least recover the money that they have paid to rental power companies despite the suspension of agreements under which the money was paid.


“If such a huge investment resulted in failure, proceedings must be initiated against persons responsible,” he said.

The court further asked if any action at all had been initiated against violators of agreements.

Furthermore, the apex court directed Wapda and Pepco to inform the court in this regard on the next hearing.

Published in The Express Tribune, December 15th, 2010.