NEPRA Imposes Rs. 50 Million Fine on CPGCL for Negligence

The National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs. 50 million on the Central Power Generation Company Limited (CGPCL). The Regulator took this step while taking cognizance of the power breakdown which plunged the whole country into darkness.

The reason for the Rs. 50 million fine on CGPCL is management negligence at the Guddu Power Plant. The massive power breakdown occurred on January 9, 2021 at 23:40 and took almost 20 hours to restore the system.

Earlier, NEPRA took serious notice of the incident and constituted an Inquiry Committee to thoroughly investigate the matter in the light of the NEPRA Act, Rules and Regulations. The Committee conducted the inquiry and presented a detailed report to the Authority, on the basis of which the Authority initiated legal proceedings against CPGCL.

Subsequently, an explanation dated April 1, 2021, was issued to CPGCL under Regulation 4(1) of the NEPRA (Fine) Regulations 2021, followed by a show cause notice dated February 11, 2022, under Section 27B of the NEPRA Act.

Moreover, an opportunity of hearing was also granted to CPGCL on May 17, 2022. However, CPGCL failed to provide any satisfactory response and was found guilty of violating relevant provisions of the applicable documents.