Nepra imposes Rs5mln each fine on three power generation firms

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs5 million each on three public sector power generation companies (GENCOs) for violating the prescribed limits of auxiliary power consumption during the years 2012, 2013 and 2014, a notification issued by the authority said on Friday.

The companies which were fined under the NEPRA (Fines) Rules 2002, included Jamshoro Power Company Limited (JPCL), GENCO-I; Central Power Generation Company Limited (CPGCL), GENCO-II; and Northern Power Generation Company Limited (NPGCL), GENCO-III.

Under Nepra Performance Standards (Generation) Rules 2009, these companies submitted quarterly performance reports for the years 2012, 2013 and 2014, containing the data particularly with respect to reference capacity, planned / unplanned outage hours, availability factor, net capacity factor and net output factor as prescribed under these rules.

The data was analysed and a comprehensive performance evaluation report was prepared, which revealed that the units / machines of aforementioned public sector power generation companies consumed excess auxiliary power (own use) during operation mode as compared to the limits allowed in their respective generation licences. Power plants were consuming electricity for running their machines more than allowed limits, the notification said.

The authority expressed concerns on the performance of public sector power generation companies and decided to initiate legal proceedings against them for failure to comply with the performance standards rules and generation licence.

Explanations and show-cause notices were issued to GENCO-I, II and III and an opportunity of hearing was also provided to them.

The representatives of these companies made their submissions; however, they did not provide any satisfactory justification for exceeding the prescribed limits of auxiliary consumption, it added.

Nepra observed that power generation companies have failed to carry out timely maintenance activities to ensure efficient operation of the units / machines, which resulted in excess auxiliary consumption.

The authority also observed that as a result of excess auxiliary consumption by

these public sector power generation companies, financial loss was caused to the national exchequer; therefore, it was decided to impose fine on these companies, it added.