ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has finally imposed fine worth Rs 10 million each on Peshawar Electric Supply Company Limited (PESCO) and Central Power Purchasing Agency (Guarantee) Limited (CPPAG) on account of non-execution of Power Purchase Agreement (PPA) with Pakhtunkhawa Energy Development Organisation (PEDO) regarding 18 MW Pehur Hydel Power Project.
The Authority (NEPRA) has concluded that the PESCO had failed to execute the PPA for the last 7 years (since March 2010) while the utility (PESCO) purchased power on rates not approved by NEPRA.
During the legal proceedings, PESCO failed to submit any plausible reason for non-payment of dues. It also failed to comply with the directions of the provision of information required by the authority and disregarded the letter written in this respect.
“Keeping in view the aforementioned violations committed by PESCO and the gravity of such violations, the authority declares PESCO as delinquent under rule 4(13) of the NEPRA (Fines) Rules, 2002 and has decided to impose a fine of Rs 10,000,000.00 (Rs 10 million only) on PESCO under NEPRA (Fines) Rules, 2002,” said NEPRA.
Regarding the CPPA-G, the authority has observed that under the NEPRA (Market Operator Registration, Standard and Procedure) Rules, 2015, it is the duty of CPPA to procure power on behalf of DISCOs. However it failed to fulfil its obligation and also forced the power producer to agree on terms and conditions which were never approved by the authority, NEPRA said.
The National Electric Power Regulatory Authority (NEPRA) has also declared CPPAG as delinquent under rule 4(13) of the NEPRA (Fines) Rules, 2002 and imposed a penalty of Rs 10,000,000.00 (Rs 10 million only) on CPPAG. The authority further decided that in case of non-execution of PPA within three months, a fine of Rs 500,000.00 (Rs 0.5 million only) per day shall be imposed on the delinquent.
