CPPA, National Grid Company fined Rs60 million for planning lapses, faulty data

The National Electric Power Regulatory Authority has imposed Rs60 million in penalties on National Grid Company and Central Power Purchasing Agency-Guarantee (CPPA-G) over planning lapses, inaccurate data and operational failures that led to higher electricity costs for consumers in January 2024.

According to a news report, the regulator fined National Grid Company Rs50 million and Central Power Purchasing Agency-Guarantee Rs10 million, finding both in violation of regulatory requirements under the NEPRA Act.

The authority found that the National Grid Company did not fully utilise the 4,000 MW Matiari-Lahore HVDC transmission line, operating it at around 2,800 MW due to delays at Lahore North Grid Station, while consumers were billed for full capacity. It also reported wind forecasting errors of up to 15%, significantly above the permissible limit, which led to curtailment, compensation claims of Rs4.4 billion and increased reliance on higher-cost thermal generation.

During January 2024, around 852 GWh of electricity was generated from RFO and HSD-based plants outside the merit order, increasing overall costs, while cheaper local coal and nuclear plants remained underutilised due to transmission constraints. The company also failed to submit mandatory system reliability reports for 2022 and 2023 within the required deadline, limiting regulatory oversight.

The Central Power Purchasing Agency-Guarantee was found to have submitted incorrect fuel cost data, overlooked RLNG supply commitments and failed to provide required dispatch and outage details, resulting in what the regulator termed an unrealistic cost base that raised fuel charges.

Both entities have been directed to pay the fines within 15 days and submit plans outlining corrective measures. The findings come as electricity consumers face elevated tariffs.