ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) imposed heavy fines on two distribution companies of ex-Wapda on Thursday for poor service to consumers, loadshedding and generating misleading information.

The two companies failed on almost a dozen counts in service delivery by a fact-finding team of the regulator through onsite physical inspection in July and August last year.

Nepra imposed a penalty of Rs5 million on Hyderabad Electric Supply Company (Hesco) and Rs4m on Lahore Electric Supply Company (Lesco) following the hearing process that gave the two companies the opportunity to defend themselves.

Discos carried out unscheduled power cuts of 14-16 hours a day

Nepra concluded that the distribution companies were found noncompliant with performance standards, distribution code, distribution licences, Nepra Act and rules and regulations.

The two companies failed to restore power supply within the prescribed time, provide proper voltage level or reduce overloading of power transformers.

Also, the companies were found at fault for their failure to utilise amounts/funds and failure to provide correct information regarding interruptions, duration of interruptions and number of complaints.

In July and August of 2016, Nepra officials visited different areas of Hesco and Lesco, conducted a consumer survey and inspected record and log books of 132kV, 66kV and 11kV grid stations. The Nepra team noted that contrary to the stated claims, consumers were being subjected to prolonged unscheduled electricity outages of more than 16 hours and 14 hours in a number of areas under Hesco and Lesco, respectively.

The inspection team observed that the transmission system constraint was also one of the reasons for unscheduled power cuts as it had insufficient capacity to carry out maximum load (demand). Consequently, consumers suffered due to voltage fluctuations. Voltages received by consumers were even less than 180V, damaging home appliances.

During field visits, consumers reported to the Nepra team that supply to their areas was not restored even after days of fault occurrence. The team also noted that damaged transformers had not been replaced in reasonable time although all other formalities were completed by consumers. Due to the poor maintenance of the distribution system, consumers faced frequent power cuts.

Nepra noted that despite a weak distribution system, Hesco could not utilise allocated funds for upkeep and maintenance of the system, which showed the company’s inefficiencies.

Based on findings of the inspection team, a detailed report was submitted to Nepra. Showing serious concerns, the authority decided to initiate legal proceedings. “After due legal course of action and affording adequate opportunities of hearing, the authority imposed the fine of Rs5m on Hesco and Rs4m on Lesco under Nepra Fine Rules,” the power regulator said.

Published in Dawn, July 28th, 2017