NEPRA imposes heavy fine on GEPCO and SEPCO

NEPRA has imposed a fine of PKR 4 Million on GEPCO and PKR 6 Million on SEPCO under NEPRA Fine Rules due to non-compliance of Performance Standards, Distribution Code, Distribution license, NEPRA Act and Rules and Regulations particularly with respect to failure to restore the power supply within prescribed time, failure to provide proper voltage level  (poor quality of supply), failure to reduce the overloading of power transformers, failure to utilize the amounts/funds and failure to provide correct information regarding interruptions, duration of interruptions and number of complaints.

2. In July and August, 2016, NEPRA team visited different areas of GEPCO & SEPCO, conducted survey of consumers and inspected record and log books of 132, 66 and 11 kV Grid Stations. The team noted that contrary to the stated claims by the officials at the top, the consumers are being subjected to prolonged un-scheduled electricity outages of more than sixteen hours and fourteen hours in a number of areas of GEPCO & SEPCO respectively.

3. It was also observed that transmission system constraint is also one of the reasons of unscheduled power cuts as the system has no sufficient capacity to carry out maximum load (demand) of country, subsequently; consumers are suffering due to voltage fluctuations. The voltages being received by the consumers in some areas are even below 180V, causing damage to home appliances.

4. The consumers told NEPRA team that supply to their areas has not been restored even after many days of fault occurrence. The team also noted that damaged transformers have not been replaced in reasonable time a1though all other formalities have been completed by consumers. Due to the poor maintenance of distribution system ultimately, consumers are facing frequent power cuts.

5. It was noted with serious concern that despite weak distribution system, SEPCO could not utilize the allocated funds, for upkeep and maintenance of the system, which shows the inefficiencies of SEPCO.

6. Based on the findings, a detailed report was submitted by the NEPRA team, on which the Authority while showing serious concerns, decided to initiate legal proceedings.

7. After due legal course of action and affording adequate opportunities of hearing, the Authority imposed the fine of PKR 4 Million on GEPCO and PKR 6 Million on SEPCO under NEPRA Fine Rules.