NEPRA imposes Rs5 million fine on NTDC for non-compliance

ISLAMABAD: The National Power Regulatory Authority (NEPRA) slapped Rs5 million fine on the National Transmission and Despatch Company (NTDC) for non-compliance to the Performance Standards Transmission Rules 2005 (Performance Standards), a statement said on Monday.

The fine has been imposed particularly with respect to voltage and frequency fluctuations. NTDC, being a transmission licensee, is required to submit Annual Performance Report to NEPRA as per the Performance Standards and terms and conditions of its licence.

Based on the Annual Performance Reports provided by NTDC, a comprehensive analysis report was prepared by NEPRA which highlighted that the NTDC has prima facie violated the permissible voltage and frequency limits in the year 2013-14 as prescribed in the Performance Standards.

The authority decided to initiate legal proceedings against NTDC. An explanation and show cause notice were issued to NTDC on July 31, 2015 and January 15, 2016 respectively. Hearings in the matter were conducted on August 18, 2016 and on April 11, 2017.

NEPRA observed that the data submitted by NTDC in its Annual Performance Report revealed that NTDC has deviated from the permissible voltage limits, which has resulted in voltage profile as low as 180kV and 170kV instead of the nominal voltage of 220kV at Sibbi and Quetta Grid stations, respectively.

The similar level of voltages was also noted at other grid stations in different areas of Pakistan. Further, violations regarding voltage limits variation showed an increase of 13 percent in 2013-14 as compared to the previous year. As a result, consumer end voltages were badly affected, as they get voltages as low as 170 volts instead of 220/230 volts.

Similarly, NTDC has failed to maintain the frequency limits as the frequency varied from 48.67 Hertz to 50.67 Hertz against the permissible frequency limits of 49.5 Hertz to 50.5 Hertz. Such variation in frequency limits resulted in partial system collapses (blackouts) and network splitting up to 10 times a year.

These blackouts caused splitting of northern and southern parts of the network and areas from Guddu to Peshawar went dark due to low frequency.

Keeping in view the aforementioned violations, the authority imposed a fine of Rs 5 million on NTDC under NEPRA Fine Rules vide its order dated January 10, 2017. The NTDC proceeded to file a review motion, against the NEPRA order. The matter was heard on April 10, 2017.

After reviewing all relevant documents and applicable law, and hearing arguments forwarded by the petitioner, NEPRA found that the NTDC has not provided sufficient or plausible ground that would result in modification or reversal of its January 2017 order. NEPRA decided to uphold its earlier decision and rejected NTDC’s review petition.