NEPRA fines three GENCOs for violating limits of auxiliary power consumption

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ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs 15 million each on three public sector power generation companies (GENCOs) including Jamshoro Power Company Limited (JPCL), Central Power Generation Company Limited (CPGCL) and Northern Power Generation Company Limited (NPGCL) under NEPRA (Fines) Rules 2002, for violating the prescribed limits of auxiliary power consumption during the years 2012, 2013 and 2014.

Under NEPRA Performance Standards (Generation) Rules 2009 JPCL, CPGCL and NPGCL submitted quarterly performance reports for the years 2012, 2013 & 2014 containing the data particularly with respect to reference capacity, planned/unplanned outage hours, availability factor, net capacity factor and net output factor as prescribed under these rules.

The data was analysed and a comprehensive performance evaluation report was prepared which revealed that the units of aforementioned GENCOs consumed excess auxiliary power during operation mode as compared to the limits allowed in their respective generation licenses, said a press release.

Power plants were consuming electric power for running their units in excess of the allowed limit. The authority showed serious concerns on the performance of public sector GENCOs and decided to initiate legal proceedings against JPCL, CPGCL and NPGCL for failure to comply with performance standards rules and generation license.

Explanations and show cause notices were issued to JPCL, CPGCL and NPGCL. An opportunity for hearing was also provided to the GENCOs, wherein, the representatives of these GENCOs made their submissions. However, they did not provide any satisfactory justification for exceeding the prescribed limit of auxiliary consumption.

The authority observed that GENCOs have failed to carry out timely maintenance activities in order to ensure efficient operation of the units, which resulted in excess auxiliary consumption.

It further observed that the national exchequer faced financial losses as a result of excess auxiliary consumption by these public sector GENCOs.