Nepra upholds Rs50 million fine on CPPA-G for regulatory violations

The National Electric Power Regulatory Authority (Nepra) has upheld a Rs50 million fine imposed on Central Power Purchasing Agency Guarantee Limited (CPPA-G), rejecting the company’s review petition against the penalty.

The regulator confirmed its earlier order issued on May 16, 2023, stating that CPPA-G failed to comply with multiple directives related to Market Operator Fee determinations for FY2019-20, FY2020-21 and FY2021-22, along with other regulatory instructions.

According to Nepra, the company was also found in violation of provisions under the Commercial Code 2018 and its obligations as a registered market operator.

The penalty was imposed under the Nepra (Fine) Regulations, 2021, following proceedings that identified breaches of Section 44 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (as amended), relevant clauses of CPPA-G’s registration terms, and the Nepra Market Operator Rules, 2015.

CPPA-G had sought a review of the decision, arguing its position during the hearing. However, the authority stated that the company did not present new or substantive evidence and largely repeated earlier arguments.

“Keeping in view the facts and available record, the Authority has upheld its earlier decision regarding imposition of the fine,” Nepra said.