NEPRA Imposes a Fine of Rs. 10m on NTDC
NEPRA has imposed another fine of Rs. 10 million on the National Transmission & Despatch Company (NTDC) for its failure to satisfy the Authority in the matter of the revision in the minimum loading limit of Lalpir and Pakgen power plants.
Earlier, the power regulator imposed an accumulative fine of Rs 20 million on NTDC for power outages and the collapse of towers.
These fines have raised questions about the stability of the NTDC transmission system.
These are old systems that are unable to transmit electricity to the power distribution companies (Discos) to supply onwards to the consumers.
Despite making efforts by the previous government, NTDC has been unable to overhaul its transmission system.
The minimum loading limit of Lalpir and Pakgen power plants was revised from 20% to 50% in April 2021, whereby, the General Manager – System Operation had opined to CPPA-G that there will be no adverse operational effect of the said revision on the national grid.
However, the succeeding General Manager – System Operation informed that the said revision had adversely affected system operation and had led to increasing in generation basket price.
NEPRA inquired from NTDC/NPCC to clarify the reasons for its change in the stance of the later GM.
However, NTDC/NPCC failed to satisfy the Authority. Subsequently, the Authority initiated legal proceedings against NTDC.IGCEP: Nepra should consult all stakeholders to ensure energy Security
Consequently, an Explanation dated October 13, 2021, was issued to NTDC under Rule 4(1) of the NEPRA (Fines) Rules 2002, followed by a Show Cause Notice dated December 30, 2021, under Rule 4(8) & (9) of the NEPRA (Fines) Rules 2002.
Moreover, an opportunity for a hearing was also granted to NTDC on April 06, 2022, however, NTDC 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 has imposed a fine of Rs. 10 Million on NTDC.
