Nepra imposes heavy fine on power company for misleading tariff filings

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has taken an unusual step by imposing a fine of Rs50 million on a state-owned power generation company for providing misleading information, which impacted electricity rates.

Additionally, two other state-owned enterprises (SOEs) in the power sector have been issued show-cause notices for breaking rules and regulations.

According to Dawn, Nepra fined the Central Power Generation Company Ltd (CPGCL), specifically its Guddu Thermal Power Station, for including over Rs1.24 billion in its tariff for a gas booster that it had actually received for free from Engro Corp. Instead of disclosing this, CPGCL misrepresented the costs.

Two other SOEs, the Central Power Purchasing Agency (CPPA) and the National Transmission and Despatch Company (NTDC), were also found in violation.

These companies had signed operational procedure agreements and black start protocols with several power producers after the countrywide blackout in January 2021. Nepra issued show-cause notices to them and may impose fines of up to Rs200 million.

In another case, Nepra highlighted that Northern Power Generation Company Ltd (NPGCL) had reported in October 2020 that the cost of converting its Nandipur plant to gas was Rs5.428 billion.

A significant portion of this cost related to a Gas Booster Compressor Station (GBCS) provided by CPGCL, which had originally received the GBCS for free from Engro Fertiliser to support a gas supply of 60mmcfd for 10 months, starting in May 2025.

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