ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed Rs1 million fine on Central Power Purchasing Agency (CPPA) for ‘deliberately’ denying legitimate benefit of lower prices to consumers.

The “CPPA, by deliberately delaying the information, denied consumers their legitimate benefit of negative FCA (fuel charges adjustment) of Rs2.15 per unit (kWh) amounting to around Rs6 billion” to consumers early this year, said an order passed by Nepra after hearing the matter for almost nine months.

The regulator said the benefit of lower fuel cost for February could not be passed on to consumers in their monthly bills originally due for April. The said benefit was, however, provided to the consumers after delay of one month ie in May 2017.

It said the fine was imposed under Nepra (Fines) Rules 2002, due to non-compliance of regulatory orders seeking submission of monthly FCA data for the month of February 2017. The regulator, in terms of second proviso to Section 31(4) of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, is required to make adjustments in the approved tariff on account of variations in fuel charges within a period of seven days on monthly basis.

For ensuring this, the CPPA is required to submit the requisite details by third of each month. On the basis of this data, the regulator conducts public hearing to conclude necessary adjustments in the reference tariff.

The regulator said considering the deadline of seven days and the directions of the Lahore High Court, the regulator issued instructions to CPPA to submit the requisite information in detail for the month of February 2017 without further delay. Despite clear instructions from the authority, the CPPA did not submit the requisite information. The information was finally submitted by CPPA in April 2017.

As the consumers were deprived of their legitimate right to have reduction in fuel charges due to deliberate delay caused by the CPPA, the regulator initiated proceedings by issuing an explanation letter and show cause notice. CPPA was provided with an opportunity of hearing to plead its case.

Published in Dawn, December 12th, 2017