K-Electric fined Rs 200 million by NEPRA over excessive load shedding

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has submitted a report in the Supreme Court on action taken against K-Electric’s prolonged power outages in the months of June and July this year in the metropolis.

According to the report, NEPRA fined the power utility with a fine worth Rs200 million for unannounced and prolonged power outages in the city.

“KE has been ordered to pay the fine within 15 days,” the report said, adding that the power supply company’s justification had been turned down.

The report further said that KE did not fulfill its end of the bargain and that it did not meet the agreed-upon requirements of power generation, gas, and furnace oil.

“KE was given an opportunity to present its stance in an open hearing and the power utility was unable to justify its doing and was blaming others”, read the report.

Furthermore, the K-Electric could have provided additional 250-megawatt electricity to the city if it had ensured proper maintenance of its power plants.

“The power company was already permitted to charge Rs 25 billion from consumers in the name of plant maintenance, however, it did not carry out the maintenance works,” the NEPRA report said while charge-sheeting the power company.

It is worth mentioning here that NEPRA on July 24 blamed K-Electric for its failure to ensure the maintenance of its power plant despite charging an amount from consumers in the power tariff.

The regulatory body on July 21 had issued a show-cause notice to the K-Electric over excessive load shedding in the metropolis. The NEPRA in light of the findings of the investigation committee decided to proceed further and issued a show-cause notice to K-Electric.

The KE, during the power outages, had claimed that it has been facing continuous challenges on account of inconsistent supply of furnace oil in line with its demand and has been highlighting this challenge so that it can be urgently resolved by the relevant authorities.

Explaining the situation, a KE spokesperson had said in a statement, “KE’s daily furnace oil requirement is close to 2,800 MTs per day, while at present, we are receiving around 2,000 MTs per day, and currently, there are pending orders of close to 14,000 MTs furnace oil.”