Nepra upholds Rs10m fine on Hesco

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has rejected the Hyderabad Electric Supply Company’s (Hesco) review motion and upheld a Rs 10 million fine imposed on the utility for failing to establish a mandatory safety directorate in line with regulatory requirements.

In its order issued on July 20, 2026, the regulator dismissed Hesco’s motion for Leave for Review against its earlier decision dated February 3, 2025, stating that the company failed to present any new evidence or grounds warranting reconsideration.

The case pertains to Hesco’s non-compliance with Nepra’s Power Safety Code, which requires all power distribution companies to establish an independent Health, Safety and Environment (HSE) directorate.

Despite repeated directions since 2021, the Hesco failed to comply within the stipulated timeframe.

READ MORE: Nepra raises concerns over HESCO’s inefficiencies

According to the regulator, the Hesco showed “non-seriousness” in implementing safety measures, noting that the company took nearly three years to initiate steps towards establishing the required directorate. The authority observed that timely compliance could have helped prevent incidents and safeguarded human lives.

The Nepra had earlier imposed a Rs 10 million fine after concluding that Hesco failed to establish the safety directorate despite multiple notices, hearings, and opportunities to comply.

In its review petition, the Hesco argued that it had since established a Health, Safety, Environment and Social Management (HSE&SM) Directorate, approved by its Board of Directors in December 2024 and operationalised in early 2025. The company also claimed to have initiated safety inspections, awareness campaigns, and compliance measures.

However, the Nepra found these submissions insufficient, noting a lack of documentary evidence regarding staffing, structure, and operational effectiveness. The regulator emphasised that merely establishing a department does not constitute compliance unless it is fully functional, adequately staffed, and effectively performing its duties.

The authority also raised serious concerns over safety performance, highlighting that 23 fatal accidents had reportedly occurred since December 2024, questioning the effectiveness of Hesco’s safety framework.

Concluding that Hesco failed to demonstrate compliance or provide valid grounds for review, the Nepra upheld its earlier decision and directed the company to pay the fine within 15 days, failing which recovery proceedings may be initiated under the Nepra Act.

The regulator reiterated that Hesco remains in violation of the Performance Standards (Distribution) Rules, Distribution Code, Power Safety Code, and other applicable regulations.

Copyright Business Recorder, 2026