NEPRA Imposes Rs. 50 Million Fine On Power Generation Company

The National Electric Power Regulatory Authority (NEPRA) has fined Central Power Generation Company Limited (CPGCL) Rs. 50 million for false filings that impacted electricity rates for end consumers. CPGCL’s Guddu Thermal Power Station procured a gas booster from Engro Corporation free of charge but included over Rs. 1.24 billion in tariff charges for it without disclosing the true details, reported a national daily. NEPRA found that CPGCL had acquired a gas booster compressor station (GBCS) from Engro but didn’t disclose that it was obtained at no cost. The regulator discovered that this wasn’t cleared with the Economic Coordination Committee (ECC), and despite CPGCL’s claim of ECC approval, no valid documentation was provided. NEPRA has further issued show-cause notices to the Central Power Purchasing Agency (CPPA) and National Transmission and Despatch Company (NTDC) for violating rules after signing operating procedures and black-start agreements with multiple power producers following the nationwide blackout in January 2021. These entities may be fined Rs. 200 million for these violations.