In a rare move, the National Electric Power Regulatory Authority (NEPRA) has fined Central Power Generation Company Ltd (CPGCL) Rs50mn for providing misleading information in regulatory filings that inflated electricity tariffs. Additionally, the regulator issued show-cause notices to two other state-owned entities for breaching rules and regulations.
The fine against CPGCL’s Guddu Thermal Power Station relates to falsely claiming over Rs1.24bn in tariffs for a gas booster that was procured free of cost from Engro Corp. CPGCL failed to disclose the truth during public hearings, misleading the regulator into approving inflated costs.
NEPRA also issued show-cause notices to the Central Power Purchasing Agency (CPPA) and National Transmission and Despatch Company (NTDC). The notices concern violations in signing operating manuals and procedures with various power producers following the nationwide blackout in January 2021, which could lead to fines of up to Rs200mn.
NEPRA’s investigation revealed that CPGCL had misrepresented the cost of a Gas Booster Compressor Station (GBCS) transferred from Engro Fertilizers, resulting in inflated tariff costs. The regulator found that the transaction was not approved by the Economic Coordination Committee (ECC), and CPGCL failed to provide sufficient documentation to justify the claim.
