Rs50m fine upheld: Nepra rejects HESCO’s review motion

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has rejected the review motion filed by Hyderabad Electric Supply Company (HESCO) and upheld its decision to impose a Rs50 million fine on the company for persistent violations of laws governing load shedding, particularly the controversial practice of outages based on Aggregate Technical and Commercial (AT&C) losses.

In its detailed order issued on July 22, 2026, the regulator dismissed HESCO’s Motion for Leave for Review (MLR) against its September 15, 2025 decision, ruling that the utility failed to present any new evidence or identify any legal error that would justify reconsideration.

Nepra maintained that HESCO remains in violation of the Nepra Act, Performance Standards (Distribution) Rules, 2005, and conditions of its distribution licence by continuing load shedding based on AT&C losses—an approach the authority has never recognised under the legal framework.

READ MORE: Nepra upholds Rs10m fine on Hesco

The case originates from persistent consumer complaints regarding excessive and unannounced outages in HESCO’s service territory.

The regulator observed that instead of following prescribed load management protocols, the utility relied on commercially driven load shedding linked to feeder losses, adversely affecting even paying consumers.

Earlier, Nepra had imposed multiple penalties on HESCO, including a Rs50 million fine in April 2024 for violating performance standards, followed by a daily fine of Rs100,000 in September 2025 for continued non-compliance.

During the proceedings, HESCO argued that the load shedding policy was implemented under the directives of the Ministry of Energy (Power Division) and had been in place since 2017, categorising feeders based on loss levels. However, Nepra noted that this admission effectively confirmed the violation rather than justifying it.

The authority also criticised HESCO for failing to improve operational efficiency despite significant allocations under operation and maintenance heads. It pointed out that other distribution companies, including IESCO, GEPCO and FESCO, had successfully reduced losses and phased out such practices.

Nepra’s data analysis revealed that actual outages in HESCO’s service areas frequently exceeded scheduled durations, in some cases by several hours, reflecting systemic inefficiencies and weak governance.

“It is a matter of grave concern that the licensee has failed to comply with the authority’s orders and continues to implement load shedding based on the AT&C criterion. This constitutes a persistent violation of applicable Nepra laws and directives,” the regulator said, adding that such practices subject consumers to unwarranted and prolonged outages and undermine service reliability.

The authority further noted that it continues to receive a large number of complaints regarding excessive and unannounced load shedding in HESCO’s jurisdiction.

Concluding that the review petition lacked merit, Nepra upheld its earlier decision and directed HESCO to pay the fine within 15 days, warning that failure to comply would result in recovery proceedings under the law.

Nepra also reiterated its directive for the utility to immediately cease AT&C-based load shedding and align its operations with the applicable legal and regulatory framework to ensure fair and non-discriminatory power supply.

Copyright Business Recorder, 2026