NEPRA imposes Rs10 mln on CPPA-G for revision in minimum loading

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs.10 million on Central Power Purchasing Agency – Guarantee Ltd (CPPA-G) due to its failure to satisfy the authority in the matter of revision in minimum loading limit of Lalpir and Pakgen power plants.

The minimum loading limit of Lalpir and Pakgen power plants was revised from 20% to 50% in April 2021 without placing the case before the Authority as it was required to do under the relevant documents, said a press release issued here Friday.

On inquiry, CPPA-G failed to satisfy the authority regarding violation of the relevant provisions of the NEPRA Act, Rules and Regulations made thereunder. Subsequently, the Authority initiated legal proceedings against CPPA-G.

Consequently, an explanation October 13, 2021, was issued to CPPA-G under Rule 4(1) of the NEPRA (Fines) Rules 2002, followed by a show cause notice dated February 14, 2022, under Rule 4(8) & (9) of the NEPRA (Fines) Rules 2002.

Moreover, an opportunity of hearing was also granted to CPPA-G on June 02, 2022, however, CPPA-G failed to provide any satisfactory response and was found guilty of violating relevant provisions of the NEPRA Act, Rules, and Regulations made thereunder.

Therefore, the authority has imposed a fine of Rs.10 million on CPPA-G.

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