ISLAMABAD: Internal fighting in the National Electric Power Regulatory Authority (Nepra), the power regulator, has intensified, evident from contrary decisions of the authority members.

Earlier, the decisions on K-Electric generation tariff and baggasse –IPPs tariff made by Member (Tariff and Finance), Mathar Niaz Rana were challenged by the Authority’s group of four led by the Chairman.

The background of the case is that during the proceedings in the matter of applications of Access Solar (Private) Limited and Access Electric (Private) Limited to opt for cost plus tariff, the Authority observed that their previous tariff lapsed as the companies were not able to achieve their financial close due to delay caused by the Licensee in approval of their Grid Interconnection Studies.

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The decision by Chairman and his three colleagues was rejected by Member (Tariff and Finance) in the matter of show cause notice issued to Iesco on account of delay in approval of Grid Interconnection Studies submitted by Access Solar(private) Limited and Access Electric (Private) Limited and subsequent losses to national exchequer.

The Authority comprising Chairman and three members in their decision stated that after due deliberations and taking into account the submissions/arguments made by the licencee and in light ofthe NEPRA Act, Nepra (Fine) Regulations, 2021, and other applicable documents they are of the considered opinion that the licencee has failed to provide any satisfactory reply to the show cause Notice served to it, therefore, the Authority has decided to impose a fine amounting to Rs 50 million on the licencee on account of delay in approval of Grid Interconnection Studies submitted by Access Solar (Pvt) ltd and Access Electric (Pvt) ltd and subsequent issuance of Power Evacuation Certificate to both the entities which caused colossal loss to national exchequer.

The licencee (Iesco) was directed to pay the fine amount of Rs 50 million in designated bank of the Authority within a period of 15 days from the date of issuance of this order and forward a copy ofthe paid instrument to the Registrar Office for information, failing which the Authority may recover the amount due under section 41 ofthe NEPRA Act as arrears of the land revenue or through any other appropriate legal means in addition to taking any other appropriate legal action against the licencee for non-compliance.

The records and contentions presented by Iesco in their defencewere reviewed by Member (Tariff and Finance),and he was ofthe considered view that Iesco, being the network operator and having mandate, had technically advised before start of the subject projects that the projects need to be connected at 132kV to manage losses and bringmore system stability.

However, NEPRA Chair and three of his colleagues overruled the point of view of Iesco as opposed to Member (Tariff and Finance) who agreed with Iesco’s explanation and did not find any reason to impose a fine of Rs 50 million on Iesco.

Copyright Business Recorder, 2024