NEPRA Imposes a Fine of Rs. 10 Million on NTDC

Islamabad, Oct 27 (Online): NEPRA has 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. 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.

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 of 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.