NEPRA imposes Rs10 mln fine each on PESCO, CPPAG for non-execution of PPA with PEDO
ISLAMABAD, (MILLAT ONLINE):National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs10 million each on Peshawar Electric Supply Company Limited (PESCO) and Central Power Purchasing Agency (Guarantee) Limited (CPPAG) on account of non-execution of Power Purchase Agreement (PPA) with Pakhtunkhawa Energy Development Organization (PEDO) regarding 18MW Pehur Hydel Power Project since March 01, 2010.
The Authority concluded that the PESCO has failed to execute the PPA for the last 7 years and has purchased power on rates not approved by NEPRA. During the legal proceedings, PESCO failed to submit any plausible reason for non-payment of dues. It also failed to comply with the directions of provision of information required by the authority and disregarded the letter written in this respect.
Keeping in view the aforementioned violations committed by PESCO and the gravity of such violations, the Authority declares PESCO as delinquent under rule 4(13) of the NEPRA (Fines) Rules, 2002 and has decided to impose a fine of Rs10 million on PESCO under NEPRA (Fines) Rules, 2002.
Regarding the CPPA-G, the Authority has observed that under the NEPRA (Market Operator Registration, Standard and Procedure) Rules, 2015, it is the duty of CPPA to procure power on behalf of power distribution companies (DISCOs).
However it failed to fulfill its obligation and also forced the power producer to agree on terms and conditions which were never approved by the Authority.Therefore, the Authority declared CPPAG as delinquent under rule 4(13) of the NEPRA (Fines) Rules, 2002 and imposed a penalty of Rs10 million CPPAG.
The Authority further decided that in case of non-execution of PPA within three months, a fine of Rs500,000 per day shall be imposed on the delinquent.