Rs50m fine imposed on power generation company

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs50 million on the Central Power Generation Company Limited (CPGCL), commonly known as GENCO-II, for violating regulatory guidelines concerning the acquisition and transfer of gas booster compressor stations (GBCS).

The penalty was imposed after a show-cause notice issued under Section 27B of the NEPRA Act, alongside relevant rules and regulations. Notably, this state-owned CPGCL (GENCO-II) also known the Guddu Thermal Power Plant, is a thermal station in Guddu, Sindh. Built in the 1980s with Soviet cooperation, the plant was expanded in 2014 when then-prime minister Nawaz Sharif inaugurated two 243 MW gas turbines. By 2017, Guddu had 17 units, contributing 1,400 to 1,750 MW to the national grid. The controversy revolves around a deal between CPGCL and Engro Fertilizers Limited, wherein CPGCL facilitated Engro’s use of its allocated 60 million cubic feet per day (MMCFD) of gas from the Mari Shallow Gas Field. In exchange, Engro transferred ownership of GBCS to CPGCL at no cost. However, CPGCL later sold these compressors to Northern Power Generation Company Limited (NPGCL) for Rs1.242 billion, despite having received them free of charge.