by Mushtaq Ghumman
ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Thursday announced it is issuing a show-cause notice to K-Electric for its failure to improve system despite getting Rs 13 billion from the federal government.
Chairman Nepra Brig Tariq Sadozai (Retd) along with Nepra spokesperson told media persons that K-Electric violated generation, transmission and distribution agreements besides Nepra’s licence.
Nepra’s remarks were almost the same which the chairman Nepra had expressed at a recent meeting of Senate standing committee on water and power headed by Senator Iqbal Zafar Jaghra. His figures were challenged by the chief executive officer (CEO) of K-Electric Tayyab Tareen.
“Nepra will issue a show-cause notice to K-Electric on agreements’ violations. The Regulator can impose a fine of Rs 100 million on the power utility besides appointment of an administrator,” the spokesperson added.
According to Chairman Nepra, the federal government had paid Rs 13 billion to K-Electric for bringing improvement in the system. According to the agreement, the power utility had to invest Rs 6 billion in transmission, Rs 3 billion in Sakada system and Rs 4 billion on upgradation of distribution system.
However, the utility did not upgrade its system despite getting Rs 13 billion.
He said that K-Electric did not fulfill any condition after the privatisation. The utility had also failed to invest $369 million from 2009 to 2011 which was mandatory as per the agreement.
He further stated that K-Electric system cannot transmit more than 2200 MW electricity. “In Ramazan, K-Electric supplied 2700MW of electricity to the system due to which the distribution system collapsed,” he added.
Source: Business Recorder