IESCO Fined Rs. 4 Million for Poor Performance

National Electric Power Regulatory Authority (Nepra) has imposed a fine worth Rs. 4 million on Islamabad Electric Supply Company (IESCO) over non-compliance with its performance standards.

The power regulatory authority issued a statement on Tuesday, stating that IESCO had failed to sustain the prescribed voltage levels and in providing electricity connections within the specified time.

Moreover, the public utility company also manipulated data pertaining to the number of interruptions and their durations, and that of complaints filed by the consumers.

According to Nepra, its team had visited IESCO in 2017 to assess its performance and verify the data it detailed in its annual performance report for FY17. The regulatory authority also conducted a survey of customers.

The team found out that the performance of IESCO was below par with regards to several performance key indicators set out as per the Nepra laws. The team submitted a detailed report in this regard.

Taking action on the basis of the report, the regulatory authority initiated legal proceedings. After the due legal course of action, Nepra passed the final order on October 18.


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Failure to Comply with the Performance Standards

According to the report, there had been over 14 hours of unscheduled power outages in several areas of IESCO during May and June 2017. The major reason behind these outages was transmission system constraint, which led to power cuts.

Consumers in some areas received voltages below 180V that damaged home appliances. Moreover, IESCO has not been providing electricity connections that were pending since last six months despite receiving payments for them. Above that, it could not provide any satisfactory answer for this act.

Not only this but Nepra also expressed concern that IESCO had been manipulating data regarding its performance and misrepresenting facts in its annual report 2016-2017.

Moreover, the utility company has no adequate mechanism for keeping a database especially regarding interruptions in power supply and the number of complaints.

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