ISLAMABAD: The National Electric Power Regulatory Authority has penalized two state-owned power sector entities with a combined fine of Rs85 million for lapses that led to over Rs35 billion in additional fuel costs for consumers within a single month, along with contributing to system inefficiencies and a nationwide power breakdown.
Under the decision, the National Grid Company has been fined Rs75 million, while the Central Power Purchasing Agency faces a Rs10 million penalty. Both organizations have been directed to deposit the fines within 15 days.
The penalties follow a three-year legal process and relate to misreporting, inaccurate demand forecasts, delays in key projects, and operational failures that disrupted the power system.
The case originated when the Central Power Purchasing Agency, in January 2024, sought a fuel cost adjustment based on an actual pooled fuel cost of Rs14.602 per unit, significantly higher than the reference cost of Rs7.4894 per unit approved for the fiscal year.
According to NEPRA, the near doubling of fuel costs raised serious concerns among stakeholders and was thoroughly reviewed during public hearings. The regulator’s probe revealed that the Central Power Purchasing Agency failed to provide accurate generation forecasts, notably excluding RLNG-based power generation despite binding take-or-pay commitments.
The findings highlight systemic weaknesses in planning and reporting within the power sector, reinforcing the regulator’s stance on stricter accountability to prevent undue financial burden on consumers.
Story by Khaleeq Kiani
