The National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs. 26 million on Hyderabad Electric Supply Company (HESCO) for failure to maintain safety standards, which caused the death of 10 persons in a tragic incident of transformer blast in Latifabad.
NEPRA had constituted a three-member committee under Section 27A of NEPRA Act 1997 to investigate the incident. The committee visited the incident site, recorded statements of the residents, and inquired about the HESCO officials concerned. It also assessed the damage to the transformer, visited the transformer manufacturer, and presented a detailed report to NEPRA. The report revealed that the incident claimed the lives of 10 persons, including a HESCO employee and nine citizens, while 12 persons sustained injuries.
Thereafter, NEPRA issued a show-cause notice to HESCO under Section 27B of the NEPRA Act, 1997, and later provided an opportunity of hearing to the power supplier firm.
Based on the evidence available on record, submissions of HESCO, and relevant provisions of the laws, rules, and regulations, the Authority concluded that HESCO had failed to discharge its statutory obligations to maintain safety standards as laid down in the relevant laws, code, and manual. The Authority imposed a fine of Rs. 26 million on HESCO.
The Authority also noticed that HESCO had given a compensation of Rs. 3.5 million to the family of its deceased employee, however, a compensation of Rs. 7.5 lac had been given to the families of nine other deceased persons from the general public.
NEPRA has, therefore, directed HESCO to compensate the families of the deceased from the general public equal to the compensation amount given to the bereaved family of its deceased employee and also share documentary evidence of the same with the Authority.
