The National Electric Power Regulatory Authority has imposed a total fine of Rs. 85 million on two state-run power sector entities over actions that led to an additional Rs. 35 billion burden on consumers in a single month, along with contributing to persistent losses and a major nationwide power breakdown.
According to the regulator, the penalty includes Rs. 75 million on the National Grid Company (NGC) and Rs. 10 million on the Central Power Purchasing Agency (CPPA) after legal proceedings that continued for nearly three years.
Nepra said the fines relate to misreporting, inaccurate demand and generation forecasts, delays in critical projects, and the nationwide breakdown, directing both companies to deposit the amount within 15 days.
The case stems from a fuel cost adjustment claim submitted by CPPA in January 2024, where the agency reported an actual pooled fuel cost of Rs. 14.602 per unit, sharply above the reference cost of Rs. 7.4894 per unit approved for the fiscal year.
The regulator said the actual fuel cost was nearly double the benchmark, raising serious concerns among stakeholders and prompting detailed scrutiny during public hearings.
Nepra’s investigation found that CPPA failed to provide accurate monthly generation forecasts and specifically excluded RLNG based power generation for January 2024, despite take-or-pay contractual obligations, a lapse that significantly increased fuel costs for consumers.