ISLAMABAD: The National Electric Power Regulatory Authority has imposed a total fine of Rs85 million on two state-run power sector entities for actions that led to over Rs35 billion in additional fuel costs for consumers in a single month, alongside contributing to system inefficiencies and a major power breakdown.
The regulator fined the National Grid Company Rs75 million and the Central Power Purchasing Agency Rs10 million, following a legal process spanning nearly three years. Both entities have been directed to deposit the penalties within 15 days.
The case stems from a fuel cost adjustment request submitted by the Central Power Purchasing Agency in January 2024, which cited an actual pooled fuel cost of Rs14.602 per unit—almost double the reference tariff of Rs7.4894 per unit set for the fiscal year.
According to NEPRA, this significant deviation raised serious concerns among stakeholders and was thoroughly examined during public hearings. The regulator’s investigation revealed that the Central Power Purchasing Agency failed to provide accurate monthly generation forecasts, notably excluding RLNG-based power generation despite binding take-or-pay contractual obligations.
The findings also pointed to broader issues, including misreporting, flawed demand forecasting, and delays in critical infrastructure projects, all of which contributed to increased financial burden on consumers and operational instability in the power sector.
This decision underscores NEPRA’s tightening oversight of the energy sector, signaling stricter accountability for inefficiencies that translate into higher costs for end-users.
Story by Khaleeq Kiani
