NEPRA slaps Rs200 mn fine on K-Electric over excessive load shedding

KARACHI: National Electric Power Regulatory Authority (NEPRA) on Monday imposed a fine of Rs200 million on K-Electric over excessive load shedding in Karachi, ARY NEWS reported.

The fine was imposed against the K-Electric for excessive load shedding during the month of June and July this year.

The K-Electric slapped with the fine for violating NEPRA Act, terms and conditions of its license and directions given by the Authority in its multi-year tariff.

It is pertinent to mention here that NEPRA on July 24 blamed K-Electric for its failure to ensure the maintenance of its power plant despite charging an amount from consumers in the power tariff.

The regulatory body on July 21 issued a show-cause notice to the K-Electric over excessive load shedding in Karachi. The NEPRA in light of the findings of the investigation committee decided to proceed further and issued a show-cause notice to K-Electric.

Divulging details of the basis of the show-cause notice today, the NEPRA report found that Karachi suffered from an excessive load shedding of 12 to 24 hours.

It found that the Bin Qasim Plant 1 of the K-Electric lacked oil storage facility of upto 120,000-ton furnace oil.

Furthermore, the K-Electric could have provided additional 250-megawatt electricity to the city if it had ensured proper maintenance of its power plants.

“The power company was already allowed to charge Rs 25 billion from consumers in the name of plant maintenance, however, it did not carry out the maintenance works,” the NEPRA report said while charge-sheeting the power company.

The K-Electric further failed to establish another power plant with a capacity of 900 megawatts by December 2019, the NEPRA report found.

The NEPRA directed the K-Electric to submit a response against the charge sheet within 15 days and warned that in case of non-compliance, the power company could face hefty fines.