Nepra fines power companies Rs85m

Published
0
A file photo of the NEPRA building. — APP/File
A file photo of the NEPRA building. — APP/File

ISLAMABAD: The National Electric Power Regu­latory Authority (Nepra) on Thursday fined two state-run power companies a total of Rs85 million for actions that burdened consumers with over Rs35 billion in extra fuel costs in a single month, in addition to causing continuous losses and a major power breakdown.

Nepra imposed a fine of Rs75m on the National Grid Co. (NGC) and Rs10m on the Central Power Purchasing Agency (CPPA) after a legal process spanning three years.

The fines relate to misreporting, faulty forecasts, critical project delays and a nationwide breakdown. Both companies were directed to deposit the fine within 15 days.

Nepra initiated proceedings after the CPPA in January 2024 claimed a fuel cost adjustment based on an actual pooled fuel cost of Rs14.602 per unit, a major deviation from the reference cost of Rs7.4894 per unit set for the fiscal year.

“The magnitude of this deviation, where the actual fuel cost was nearly double the reference fuel cost, raised serious concerns among stakeholders and was deliberated during the public hearing,” Nepra said.

The regulator’s investigation found that the CPPA failed to provide accurate monthly generation forecasts, specifically excluding RLNG-based power generation for January 2024, despite take-or-pay contract obligations.

Published in Dawn, April 3rd, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Deadly classrooms
Updated 16 Oct, 2026

Deadly classrooms

Parents should not have to become structural engineers to judge whether their children are safe at school.
Diplomatic options
Updated 16 Oct, 2026

Diplomatic options

Regional states know that the alternative to talks — a fully fledged war on both fronts — will bring immeasurable destruction to the Gulf, the Red Sea and the surrounding areas.
Hunger in Pakistan
16 Oct, 2026

Hunger in Pakistan

PAKISTAN’S position as the country most affected by hunger in South Asia is not surprising. An economy battered by...
Lagging behind
Updated 15 Oct, 2026

Lagging behind

The immediate task is to contain inflation and protect vulnerable households without reviving unsustainable subsidies or excessive demand.
India voter purge
Updated 15 Oct, 2026

India voter purge

Earlier, the BJP and its Hindutva cohorts could get away with trampling the rights of Indian Muslims, but now their shenanigans are not working.
Multan derailment
15 Oct, 2026

Multan derailment

IN numerous states, including many of Pakistan’s neighbours, rail transport is a safe and affordable mode of...