Nepra slaps multi-million-rupee fines on Discos for regulatory breaches

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a total fine of Rs100 million on four power distribution companies for breaching regulatory rules.

According to the authority, the Gujranwala Electric Power Company (GEPCO) has been fined Rs50 million, while the Quetta Electric Supply Company (QESCO) faces a penalty of Rs40 million. The Faisalabad Electric Supply Company (FESCO) and Hyderabad Electric Supply Company (HESCO) have each been fined Rs10 million.

Nepra has instructed the companies to deposit the amount in its designated bank account within 15 days and submit proof of payment to the Registrar’s Office. Failure to comply could lead to recovery of the fines under Section 41 of the Nepra Act as arrears of land revenue, along with further legal action.

The regulator said the fines were imposed after the companies were found violating various operational and consumer service standards set under Nepra rules.

Power Division defends KE tariff review, says grid electricity cheaper than own generation

Meanwhile, the Ministry of Energy’s Power Division clarified that K-Electric (KE) is currently drawing around 2,000 megawatts of electricity from the national grid, which is cheaper than the power produced by its own plants.

A ministry spokesperson said Nepra’s recent review of KE’s multi-year tariff mainly relates to the company’s administrative and operational matters. “KE is drawing 2,000 MW from the national grid and may draw even more in the future. This electricity is less expensive than KE’s self-generated power,” the official explained.

The spokesperson noted that consumers in Karachi, like the rest of Pakistan, continue to benefit from uniform national tariffs and subsidies. However, the government has decided to prevent any misuse of these subsidies by private companies. “Preventing public-sector subsidies from turning into private profit is a national responsibility,” the statement added.

The ministry dismissed reports suggesting that Nepra’s decision was against the interests of Karachi’s consumers. “In fact, the determination aims to ensure fairness and accountability in KE’s operations,” the official said.

Highlighting performance issues, the Power Division pointed out that public-sector utilities like the Islamabad, Faisalabad and Gujranwala electricity companies perform better than KE in areas such as bill recovery, reduction of line losses and service quality.

The ministry further noted that Nepra’s review seeks to keep KE’s profit margins within reasonable limits. Previously, the company was allowed a return on investment ranging between 24 and 30 percent, linked to the US dollar.