NEPRA Imposes Heavy Fines on GEPCO And SEPCO

NEPRA has imposed a fine of Rs. 4 million on GEPCO and Rs. 6 million on SEPCO under NEPRA Fine Rules due to non-compliance with Performance Standards, Distribution Code, Distribution license, NEPRA Act relating to the Rules and Regulations.

Some particular reasons for the fine include failure to restore the power supply within a prescribed time, failure to provide proper voltage level  (poor quality of supply), failure to reduce the overloading of power transformers, failure to utilize the amounts/funds and failure to provide correct information regarding interruptions, duration of interruptions and number of complaints.

In July and August 2016, NEPRA team visited different areas of GEPCO & SEPCO, conducted a survey of consumers and inspected record and log books of 132, 66 and 11 kV Grid Stations.

The team noted that contrary to the stated claims by the top officials, the consumers are being subjected to prolonged and un-scheduled electricity outages of more than sixteen hours and fourteen hours in a number of areas of GEPCO & SEPCO, respectively.

It was also observed that transmission system constraint is also one of the reasons of unscheduled power cuts as the system has insufficient capacity to carry out maximum load (demand) of the country, subsequently; consumers are suffering due to voltage fluctuations. The voltages being received by the consumers in some areas are even below 180V, causing damage to home appliances.

The consumers told NEPRA team that supply to their areas is not restored even after many days of fault occurrence. The team also noted that damaged transformers have not been replaced in reasonable time although all other formalities have been completed by consumers. Due to the poor maintenance of distribution system ultimately, consumers are facing frequent power cuts.

It was noted with serious concerns that despite weak distribution system, SEPCO could not utilize the allocated funds for upkeep and maintenance of the system, which shows the inefficiencies of SEPCO.

Based on the findings, a detailed report was submitted by the NEPRA team, on which the Authority, while showing serious concerns, decided to initiate legal proceedings.

After a due legal course of action and affording adequate opportunities for hearing, the Authority imposed the fine of Rs. 4 million on GEPCO and Rs. 6 million on SEPCO under NEPRA Fine Rules.