NTDC fined Rs10mn for delaying projects

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ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs 10 million on M/s National Transmission and Despatch Company Limited (NTDC) on account of undue delay in power evacuation projects including transmission lines for power plants and development works.

The Authority has taken serious note of abnormal delay in completion of interconnection arrangement for 404 MW Uch-II power plant (i.e. 220 kV Uch-II to Sibi, Transmission Line, 125 km), said a press release issued here Thursday.

Uch-II is one the cheapest gas based power plant which is currently operating on an interim arrangement. The plant was commissioned in April 2014 and it has been underutilised due to incomplete interconnection arrangement.

Similar is the case of 747 MW Guddu new power plant which was commissioned in April 2014 and is still operating on interim arrangement despite a lapse of almost four years.

Furthermore, as per contract 220 kV Mansehra, 220 kV Chakdara, 220 kV DI Khan and 220 kV Nowshera grid stations were required to be completed by December 2016. However, the said grid stations have still not been completed; consequently, certain areas of KPK which include Mansehra, Hazara, Swat, DI Khan are facing low voltage and power supply constraints.

500-kV Rahim Yar Khan grid station has been delayed by 6 years, 220 kV Dera Murad Jamali grid station is delayed by 4 years and 220 kV Ghazi Rd Lahore grid station is also delayed by more than 1 year.

The work is ongoing on these grid stations. Moreover, 220 kV Chistian and 220 kV Gujrat grid stations have been completed with a delay of 3 years and 2 years respectively.

The delay in projects has not only caused serious technical and financial complications but also resulted in low voltages and extended hours of load shedding.

NTDC being a National Grid Company within the meaning of Section 18 of the NEPRA Act is responsible to operate and provide safe, reliable transmission and interconnection services to power plants.

Moreover, Authority vide its instruction dated September 11, 2015, inter alia, directed NTDC to expedite work on all delayed projects and ensure their completion as per contractual completion dates. However, NTDC failed to full fill its obligation under NEPRA Act and also failed to comply with directions of the Authority.