Business

NEPRA Slaps Rs. 10 Million Fine on NTDC

The National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs. 10 million on the National Transmission & Despatch Company (NTDC) for its failure to satisfy the Authority in the matter of revision in the minimum loading limit of Lalpir and Pakgen power plants.

According to details, the minimum loading limit of Lalpir and Pakgen power plants was revised from 20 percent to 50 percent in April 2021, whereby, General Manager – System Operation had opined to CPPA-G that there will be no adverse operational effect of the said revision on the national grid.

However, the succeeding General Manager informed that the said revision had adversely affected system operation and has led to an increase in generation basket price. NEPRA inquired from NTDC/NPCC to clarify the reasons for its change in stance. However, NTDC/NPCC failed to satisfy the Authority. Subsequently, the Authority initiated legal proceedings against NTDC.

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Consequently, an explanation was issued to NTDC under Rule 4(1) of the NEPRA (Fines) Rules 2002, followed by a show cause notice under Rules 4(8) & (9) of the NEPRA (Fines) Rules 2002.

An opportunity of hearing was also granted but NTDC failed to provide any satisfactory response and was found guilty of violating relevant provisions of NEPRA. Therefore, the Authority imposed a fine of Rs. 10 million on NTDC.

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ProPK Staff