Nepra penalised distribution companies for engaging in loadshedding on commercial grounds in violation of Nepra regulations.

ISLAMABAD  -  The National Electric Power Regulatory Authority (NEPRA) Thursday imposed fines of Rs262.5 million on five power distribution companies (Discos) including K-Electric for unan­nounced loadshedding during May and June 2022, on AT&C-based (Aggregate, Technical and Commercial), and fatal accidents.

NEPRA concluded its inves­tigations and penalized these distribution companies, for engaging in loadshedding on commercial grounds, in viola­tion of NEPRA regulations, said separate decisions issued by NEPRA. The fined companies include Peshawar Electric Sup­ply Company (PESCO), Quetta Electric Supply Company (QES­CO), Hyderabad Electric Sup­ply Company (HESCO), Sukkur Electric Power Company (SEP­CO), and Karachi-based priva­tized K-Electric. The fine is Rs50 million for each company.

Separately, NEPRA has also imposed a fine of Rs 12.5 mil­lion on QESCO for occurring 10 fatal accidents in its area during 2022-23. The Author­ity has also observed that the licensee gives compensation of PKR 3.5 million to the fami­lies of its employees in case of their fatal accident along with a job to next of kin. However, the Authority has also noted that the licensee has not given any compensation to the members of bereaved families of public persons who lost their lives due to the above-mentioned contraventions of the law by the licensee. Therefore, the Authority hereby directs the licensee to give compensation to the deceased families equal to the amount being given to its employees’ family and pro­vide jobs to their next of kins. Further, the licensee shall sub­mit documentary evidence of its compliance in this regard to the satisfaction of the Authority within a period of two months.

The power regulator dis­closed that these companies were found to have implement­ed commercial loadshedding on their systems for durations ranging from 4 to 16 hours. Le­gal action was initiated against these companies nationwide in 2022, with NEPRA issuing no­tices and summoning them for hearings. All Discos were pro­vided ample opportunity for defense, NEPRA assured.

Emphasizing compliance with regulations, NEPRA in­structed all Discos to discon­nect only defaulters’ electricity connections, not entire feeders. But, these companies instead of disconnecting these con­nections resorted to observing prolonged and unannounced power outages on these feed­ers. NEPRA noted that simi­lar instances of commercial loadshedding were observed last summer, attributing this practice to Discos’ attempts to minimize reported line losses. Highlighting the revelation of overloading by the companies themselves, NEPRA expressed concern over their failure to adequately supply electricity to consumers despite efforts.

In September 2023, NEPRA issued show-cause notices to distribution companies follow­ing complaints of unauthor­ized overloading. Inspections conducted by NEPRA revealed flaws in the systems of these companies. In KE case, NEPRA said that the Authority has con­sidered the submissions of the licensee and observes that there is still AT&C-based loadshed­ding on 30% of the licensee’s feeders. In light of the weekly monitoring of loadshedding reports by the Regional Office, Karachi, it has been observed that the licensee is not even fol­lowing its so-called AT&C based loadshedding criteria and the consumers are experiencing ex­tended hours of loadshedding even more than their scheduled hours. Therefore, the claims of the licensee seem not valid.

In the SEPCO case, NEPRA investigated load-shedding practices, finding discrepancies in the company’s adherence to regulations. SEPCO justified loadshedding based on NPCC instructions and government policy, but NEPRA criticized extended hours and prioritiza­tion of commercial over tech­nical reasons. Despite SEPCO’s reference to a Supreme Court judgment, NEPRA emphasized technical justifications for loadshedding. NEPRA rejected SEPCO’s response and imposed fines for violations and non-compliance. 

Similarly, HESCO disputed NEPRA’s actions but faced criti­cism and fines for loadshedding practices. K-Electric attributed recovery challenges to eco­nomic conditions, but NEPRA cited internal inefficiencies and persistent AT&C-based load shedding. PESCO failed to meet power quotas due to exces­sive loadshedding, prompting NEPRA to stress efficiency im­provement overburdening con­sumers. In QESCO’s case, NE­PRA condemned loadshedding based on AT&C losses and di­rected focus on efficiency rather than consumer burden. If there is 98% loss, then why QESCO is maintaining the network and get O&M allowance from NEPRA every year under O&M head. The licensee has not sub­mitted anything in this regard which shows that the licensee is using this tool as a source to show reduction in line losses rather than taking any concrete step. Hence the licensee’s sub­missions are not justified and are rejected without having any substance, the decision said.