NEPRA imposes heavy fine on NTDC

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs 5 million on National Transmission and Despatch Company (NTDC) due to non-compliance of Performing Standards Transmission Rules 2005 particularly with respect to voltage and frequency fluctuations.

NTDC, being a transmission licensee, is required to submit Annual Performance Report to NEPRA as per performance standards and terms and conditions of its license.

Based on the Annual Performance Reports provided by NTDC, a comprehensive analysis report was prepared by NEPRA which highlighted that the NTDC has prima facie violated the permissible voltage and frequency limits in the year 2013-14 as prescribed in the performance standards. Based on the findings of analysis report, the Authority (NEPRA) decided to initiate legal proceedings against NTDC. An explanation and show cause notice were issued to NTDC on July 31, 2015, and February 15, 2016, respectively. Hearings on the matter were conducted on August 18, 2016, and on April 11, 2017.

The authority observed that the data submitted by NTDC in its Annual Performance Report revealed that NTDC has deviated from the permissible voltage limits, which has resulted in voltage profile as low as 180KV and 170 KV instead of the nominal voltage of 220KV at Sibbi and Quetta Grid Stations, respectively. The similar level of voltage was also noted at other grid station in different areas of Pakistan. Further, violations regarding voltage limits variation showed an increase of 13 per cent in 2013-14 as compared to previous year. As a result, consumer end voltage was badly affected, as they got voltages as low as 170 volts instead of 220/230 volts.

Similarly, NTDC has failed to maintain the frequency limits as the frequency varied from 48.67 Hertz to 50.67 Hertz against the permissible frequency limits of 49.5 Hertz to 50.5 Hertz. Such variation in frequency limits resulted in partial system collapse (blackouts) and network splitting up to 10 times a year. These blackouts caused splitting of northern and southern parts of the network and areas from Guddu to Peshawar went under dark due to low frequency.

In view of above, the authority issued an explanation and a show caused notice to NTDC. Keeping in view the aforementioned violations, the authority imposed a fine of Rs 5 million on NTDC under NEPRA Fine Rules vide its order dated January 10, 2017.

The NTDC proceeded to file a review motion, against the above-mentioned order of the authority, the matter as heard on April 10, 2017.

After reviewing all relevant documents and applicable law and hearing arguments forwarded by the petitioner, the authority found that the NTDC has not provided a sufficient or plausible ground that would result in modification or reversal of its order dated January 10, 2017. In view of above, the authority decided to uphold its earlier decision to impose fine of Rs 5 million and rejected the review petition of NTDC.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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