Nepra slaps Rs50m penalty on KE, 4 other Discos

The National Electric Power Regulatory Authority (Nepra) has imposed a penalty of Rs50 million each on K-Electric and four power Distribution Companies (Discos) for loadshedding in May and June 2022 up to 16 hours on the basis of AT&C (Average Technical and Commercial) losses policy which is not in line with the provisions of the NEPRA Act, 1997, and Performance Standards (Distribution) Rules, 2005.

Four Discos, on which the penalty of Rs50 million has been imposed are Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company Ltd (HESCO), Quetta Electric Supply Company (QESCO), and Peshawar Electric Supply Company (PESCO).

The issue of unscheduled load shedding between four to 16 hours was highlighted during public hearings in the matter of monthly Fuel Price Adjustments (FPAs) for Discos and KElectric

being held on a monthly basis, number of complaints regarding unscheduled load shedding by general public had been and are being received by the Authority.

According to Rule 4 (f) of NEPRA Performance Standards Rules: (i) a distribution company shall have plans and schedules available to shed up to 30 per cent of its connected load at any time upon instruction from NTDC. This 30 per cent load must be made up from separate blocks of switchable load, which can be disconnected in turn at the instruction from NTDC. A distribution company shall provide copies of these plans to NTDC;(ii) wherever possible NTDC shall give distribution companies advance warning of impending need for load shedding to maintain system voltage and/or frequency in accordance with the Grid Code; and (iii) as per the provisions of the Grid Code, NTDC shall maintain an overview and as required instruct each distribution company the quantum of load to be disconnected and the time of such disconnection. This instruction shall be given in clear, unambiguous terms and related to prepared plans.

The Authority observed that the power entities are even violating their own so-called AT&C policy and carrying out excessive load shedding as compared to the scheduled one. Moreover, few feeders were randomly selected, and observed that the Licensee has been failed to make improvements in technical and financial health of those feeders since last four years despite allowing colossal amounts under O&M head by NEPRA and continuing their operations in status quo, due to which, even good paying consumers are being suffered a lot.

Therefore, the authority decided to initiate legal proceedings against the Licensees under NEPRA Fine Regulations, 2021.

In view thereof, an Explanation was served to the Licensee under Regulation 4(1) and 4(2) of NEPRA (Fine) Regulation, 2021 on January 03, 2023, on account of providing electricity on a non-discriminatory basis by carrying out AT&C-based load shedding and failure to comply with Performance Standards (Distribution) Rules.