The National Electric Power Regulatory Authority (NEPRA) has levied a fine of Rs50 million on Islamabad Electric Supply Company (IESCO) for delays in approving grid interconnection studies, which resulted in considerable losses for the national exchequer.
According to NEPRA’s ruling, IESCO failed to adequately respond to a show-cause notice regarding delays in approving studies submitted by Access Solar Private Limited and Access Electric Private Limited.
NEPRA’s decision, based on an extensive review of the submissions, arguments, and regulatory provisions under the NEPRA Act and the 2021 NEPRA (fine) regulations, highlighted that IESCO’s delay in issuing Power Evacuation Certificates (PECs) to the two companies led to significant financial repercussions. The fine must be paid to NEPRA’s designated bank within 15 days of the order, with NEPRA reserving the right to recover the amount through legal action should IESCO fail to comply.
During the hearing, IESCO defended its position, asserting it had approved the interconnection of the solar plants at the 11kV level and that delays were not its fault. IESCO argued that assessing system constraints is a standard part of the approval process and claimed it had made approvals that should have supported financial closure. However, NEPRA determined these claims to be unsubstantiated, noting that IESCO’s previous approvals in 2012 and 2020 were irrelevant to the current situation due to repeated delays from the sponsor.
NEPRA further noted that the PEC was issued after a seven-month delay, which could have been mitigated promptly. IESCO’s assertions that NEPRA’s conclusions were flawed and based on incorrect assumptions were dismissed by the regulator, which emphasized the necessity of compliance and accountability within the power sector.
