The National Electric Power Regulatory Authority (Nepra) has slapped Rs10 million of penalty on K-Electric (KE) claiming the utility firm has failed to meet the service standards.
“The authority took cognizance of the consistent failures of terms and conditions of licences and applicable law by KE and served a show cause notice (to) the utility,” the Nepra said in a notice on Friday.
The KE, however, refuted the claim. “Our performance is better than other distribution companies (Discos),” a statement issued by the KE said. “The Nepra should initiate proceedings against all the discos whose performance was not good.”
The regulatory authority, citing particularly the performance of the KE in June 2015, said extended hours of load shedding, system failures, and power supply breakdowns were noted in the service territory of the utility.
“KE failed to ensure uninterrupted power supplies to the consumers and to provide distribution services on a non-discriminatory basis,” it said.
But K-Electric said the system failure in June 2015 was due to the heat wave, which was unprecedented.
The Nepra, in the notice, said the power utility ‘deliberately’under-utilized its available net generation capacity, “and it failed to restore the supply in case of an unscheduled interruption in power supply.”
“Inadequacy of its transmission and distribution systems… could not support the supply of additional power from generation plants,” said the authority.
KE was also accused of consistent breach of its terms and conditions of license in ensuring safe, reliable and efficient supply of electricity in accordance with the requirements and provisions of grid and distribution codes and performance standards (distribution).
The KE’s statement contended that the company had complied with the requirements of the Nepra Act, the rules and regulations, the terms and conditions of its licenses and the provisions of the implementation agreement.
The Nepra also warned that if KE continues with, “the practice of reducing or underutilizing its generation capacity, strict punitive action will be taken against it in future.”
It also directed KE to provide electric power services to all the consumers without any discrimination, increase its generation capacity, and improve its transmission and distribution system in accordance with its investment plans.
“The authority took cognizance of the consistent failures of terms and conditions of licences and applicable law by KE and served a show cause notice (to) the utility,” the Nepra said in a notice on Friday.
The KE, however, refuted the claim. “Our performance is better than other distribution companies (Discos),” a statement issued by the KE said. “The Nepra should initiate proceedings against all the discos whose performance was not good.”
The regulatory authority, citing particularly the performance of the KE in June 2015, said extended hours of load shedding, system failures, and power supply breakdowns were noted in the service territory of the utility.
“KE failed to ensure uninterrupted power supplies to the consumers and to provide distribution services on a non-discriminatory basis,” it said.
But K-Electric said the system failure in June 2015 was due to the heat wave, which was unprecedented.
The Nepra, in the notice, said the power utility ‘deliberately’under-utilized its available net generation capacity, “and it failed to restore the supply in case of an unscheduled interruption in power supply.”
“Inadequacy of its transmission and distribution systems… could not support the supply of additional power from generation plants,” said the authority.
KE was also accused of consistent breach of its terms and conditions of license in ensuring safe, reliable and efficient supply of electricity in accordance with the requirements and provisions of grid and distribution codes and performance standards (distribution).
The KE’s statement contended that the company had complied with the requirements of the Nepra Act, the rules and regulations, the terms and conditions of its licenses and the provisions of the implementation agreement.
The Nepra also warned that if KE continues with, “the practice of reducing or underutilizing its generation capacity, strict punitive action will be taken against it in future.”
It also directed KE to provide electric power services to all the consumers without any discrimination, increase its generation capacity, and improve its transmission and distribution system in accordance with its investment plans.
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