ISLAMABAD-NEPRA has imposed a fine of Rs 10 million on Central Power Purchasing Agency – Guarantee Ltd. (CPPA-G) due to its failure to satisfy the Authority in the matter of revision in minimum loading limit of Lalpir and Pakgen power plants.
CPPA-G failed to provide any satisfactory response and was found guilty of violating relevant provisions of the NEPRA Act, Rules, and Regulations, said spokesman NEPRA.The minimum loading limit of Lalpir and Pakgen power plants was revised from 20% to 50% in April 2021 without placing the case before the Authority as it was required to do under the relevant documents. On inquiry, CPPA-G failed to satisfy the Authority regarding violation of the relevant provisions of the NEPRA Act, Rules and Regulations made thereunder. Subsequently, the Authority initiated legal proceedings against CPPA-G.
Consequently, an explanation dated October 13, 2021, was issued to CPPA-G under Rule 4(1) of the NEPRA (Fines) Rules 2002, followed by a show cause notice dated February 14, 2022, under Rule 4(8) & (9) of the NEPRA (Fines) Rules 2002. Moreover, an opportunity of hearing was also granted to CPPA-G on June 02, 2022, however, CPPA-G failed to provide any satisfactory response and was found guilty of violating relevant provisions of the NEPRA Act, Rules, and Regulations made thereunder. Therefore, the Authority imposed a fine of Rs. 10 million on CPPA-G.
It is worth mentioning here that on October 27, 2022, NEPRA had also imposed a fine of Rs. 10 million on National Transmission & Despatch Company (NTDC) for its failure to satisfy the Authority in the matter of revision in minimum loading limit of Lalpir and Pakgen power plants.
The minimum loading limit of Lalpir and Pakgen power plants was revised from 20% to 50% in April 2021, whereby, General Manager – System Operation had opined to CPPA-G that there will be no adverse operational effect of the said revision on national grid, said spokesman NEPRA here. However, the succeeding General Manager – System Operation informed that the said revision had adversely affected system operation and has led to increase in generation basket price. NEPRA inquired from NTDC/NPCC to clarify the reasons for its change in stance of the later GM. However, NTDC/NPCC failed to satisfy the Authority. Subsequently, the Authority initiated legal proceedings against NTDC.
