ISLAMABAD: In an unusual regulatory action, the National Electric Power Regulatory Authority (NEPRA) has imposed a Rs50 million fine on Central Power Generation Company Ltd (CPGCL) for submitting deceptive regulatory filings that inflated electricity tariffs. The fine is linked to CPGCL’s Guddu Thermal Power Station, which charged over Rs1.24 billion in tariffs for a gas booster that was procured at no cost from Engro Corp.
NEPRA also issued show-cause notices to two other state-owned entities, the Central Power Purchasing Agency (CPPA) and the National Transmission and Despatch Company (NTDC), for procedural violations related to agreements signed with power producers after the January 2021 nationwide blackout. The fines for these violations could reach up to Rs200 million.
The investigation found that CPGCL had misrepresented the cost of a gas booster compressor station in its filings. Although the gas booster was acquired free of charge, CPGCL did not disclose this, inflating costs for its 747MW Guddu power plant. NEPRA’s investigation further revealed that the company had failed to obtain the necessary approval from the Economic Coordination Committee (ECC), violating regulatory protocols.
Story by Khaleeq Kiani
