NEPRA im­poses Rs 1m fine on CPPA

The Pak Banker - - NATIONAL -

Na­tional Elec­tric Power Reg­u­la­tory Au­thor­ity (NEPRA) has im­posed Rs 1 mil­lion fine on Cen­tral Power Pur­chas­ing Au­thor­ity (CPPA) for the first time, un­der rule 6 of the NEPRA (Fines) Rules 2002 af­ter re­ject­ing its re­sponse to the show cause no­tice and pro­vid­ing a hear­ing.

The NEPRA de­clared that NTDC has de­lib­er­ately vi­o­lated the ex­plicit di­rec­tions of the Au­thor­ity re­gard­ing sub­mis­sion of the Fuel Price Ad­just­ment data in the spec­i­fied time pe­riod, said a state­ment is­sued here Mon­day.

NEPRA is re­quired to make fuel price ad­just­ments within a pe­riod of seven days on monthly ba­sis and CPPA is to sub­mit the req­ui­site de­tails to hold a hear­ing for fuel cost ad­just­ment. NEPRA has time and again is­sued sev­eral in­struc­tions to CPPA to sub­mit the monthly in­for­ma­tion of FPA by 3rd of ev­ery month. De­spite clear in­struc­tions from the Au­thor­ity CPPA did not sub­mit the req­ui­site in­for­ma­tion within the pre­scribed time and vi­o­lated the ex­plicit di­rec­tions of the Au­thor­ity. There­fore, the au­thor­ity de­cided to ini­ti­ate pro­ceed­ings against CPPA by is­su­ing an ex­pla­na­tion un­der NEPRA (Fines) Rules, 2002 for fail­ure to pro­vide the req­ui­site in­for­ma­tion as well as non-com­pli­ance of the di­rec­tions of the au­thor­ity with re­spect to monthly Fuel Price Ad­just­ments.

The re­sponse to ex­pla­na­tion was found un-sat­is­fac­tory and a show­cause no­tice was is­sued as to why a penalty up to Rs. 100 mil­lion may not be im­posed. The au­thor­ity af­ter re­ceiv­ing re­sponse of the show cause and de­tailed de­lib­er­a­tions on the is­sue de­cided to pro­vide an op­por­tu­nity of hear­ing to CPPA. The sub­mis­sions made by CPPA in writ­ing as well as dur­ing the hear­ing were de­clared as un­sat­is­fac­tory for the rea­sons that the plea of CPPA that it has al­ways tried to meet up the time­lines given by the au­thor­ity is not cor­rect. An anal­y­sis of monthly FPA data/in­for­ma­tion sub­mit­ted by CPPA for the pe­riod from Jan­uary 2014 to April 2015 shows that it has failed to pro­vide the de­sired in­for­ma­tion within the time pe­riod stip­u­lated by the Au­thor­ity.

The me­ter­ing data of all com­mon de­liv­ery points be­comes avail­able at 2400 hours of the last day of the month to work out/pre­pare the Fuel Charges Ad­just­ment data/ in­for­ma­tion, thus any de­lay in com­pi­la­tion of the data be­yond the Au­thor­ity's stip­u­lated time frame is not jus­ti­fied.

The tar­get date for sub­mis­sion of monthly Fuel Charges Ad­just­ment data was fixed af­ter con­sul­ta­tion and agree­ment with NTDC/CPPA. There­fore, they are bound by their com­mit­ment. The se­cond pro­viso to Sec­tion 31(4) ex­plic­itly di­rects that the au­thor­ity may on monthly ba­sis and not later than a pe­riod of seven days make ad­just­ments in the ap­proved tar­iff.

There­fore, in or­der to com­ply with the statu­tory re­quire­ments, it is the duty of the CPPA to pro­vide the req­ui­site data as di­rected by the Au­thor­ity within three days of the close of the month. Fail­ing to do so has re­sulted in im­po­si­tion of fine on CPPA.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.