Nepra upholds Rs10 million fine on Hesco over failure to establish safety directorate

The National Electric Power Regulatory Authority (Nepra) has rejected Hyderabad Electric Supply Company’s review petition and upheld a Rs10 million fine for failing to establish a mandatory independent safety directorate.

In an order issued on July 20, 2026, Nepra dismissed Hesco’s motion for leave for review against its February 3, 2025 decision, saying the company had presented no new evidence or grounds for reconsideration.

The case relates to Hesco’s failure to comply with Nepra’s Power Safety Code, which requires all electricity distribution companies to establish an independent Health, Safety and Environment directorate.

Nepra said Hesco had failed to meet the requirement despite repeated directions issued since 2021 and took nearly three years to begin establishing the directorate.

The regulator said timely compliance could have helped prevent accidents and protect human lives.

Nepra had imposed the Rs10 million penalty after finding that Hesco failed to establish the safety directorate despite receiving several notices, hearings and opportunities to comply.

In its review petition, Hesco said its Board of Directors had approved a Health, Safety, Environment and Social Management Directorate in December 2024 and that the unit became operational in early 2025.

The company also said it had begun safety inspections, awareness campaigns and other compliance measures.

However, Nepra found insufficient documentary evidence regarding the directorate’s staffing, organisational structure and operational effectiveness.

The regulator said creating a department alone did not amount to compliance unless it was fully functional, adequately staffed and effectively performing its responsibilities.

Nepra also raised concerns over Hesco’s safety performance, noting that 23 fatal accidents had reportedly occurred since December 2024.

The authority directed Hesco to pay the fine within 15 days, warning that recovery proceedings could be initiated under the Nepra Act in case of non-payment.

Nepra said Hesco remained in violation of the Performance Standards (Distribution) Rules, Distribution Code, Power Safety Code and other applicable regulations.