Nepra slaps Rs26m fine on Hesco over transformer explosion

Published October 12, 2021
This file photo shows the logo of the National Electric Power Regulatory Authority. — APP/File
This file photo shows the logo of the National Electric Power Regulatory Authority. — APP/File

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday imposed a fine of Rs26 million on the Hyderabad Electric Supply Company (Hesco) on account of a transformer blast in the Latifabad area of Hyderabad in which 10 people were killed and 12 others injured on July 22.

The regulator had issued a show-cause notice to Hesco on Aug 9 on the fatal incident. Nepra said it had constituted a three-member committee under Section 27A of the Nepra Act 1997, which investigated the matter in detail by visiting the site of incident, recording statements of the residents and inquiring the officials concerned and officers of Hesco.

The committee also conducted analysis of the damaged transformer, visited the manufacturer of the transformer and presented a detailed report to the regulator. According to the report, a total of 10 persons, including an employee of Hesco, lost their lives and 12 others suffered injuries.

Upon submission of report by the investigation committee, Nepra had issued the show-cause notice to Hesco and directed the company to immediately improve its overall distribution network to avoid any such occurrence in future. Hesco had been given 15 days to respond to the notice so that the regulator could decide the matter in accordance with the law.

While issuing the show-cause notice, the regulator also provided an opportunity of hearing to Hesco. Based on the evidence available on record, submissions by Hesco and relevant provisions of the laws, rules and regulations, Nepra concluded that the company had failed to discharge its statutory obligations to maintain safety standards as laid down in the relevant laws, code and manual.

The regulator, therefore, imposed a fine of Rs26m on Hesco. The authority noticed that Hesco had given a compensation of Rs3.5m to the family of its deceased employee and Rs750,000 to the families of nine other deceased.

Nepra has, therefore, directed Hesco to compensate the families of the deceased from the general public equal to the amount given to its deceased employee’s family (Rs3.5m each) and share documentary evidence of the same with the regulator.

Published in Dawn, October 12th, 2021

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