ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed cumulative fines of Rs 57.5 million on Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO) and the Gujranwala Electric Power Company (GEPCO) for non-compliance with Nepra rules that led to fatal accidents in both companies during fiscal year 2023–24.
The Authority took serious notice of the fatalities and constituted an Investigation Committee (IC) under Section 27A of the NEPRA Act.
The IC was mandated to determine whether any violation or substantive non-compliance of the law and applicable regulatory documents had been committed by the licensees, and to ascertain the associated facts and causes of the incidents. Notices were accordingly issued to both licensees.
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Nepra also served Show-Cause notices to both distribution companies and the Authority sought their replies regarding the fatal incidents. However, the authority found the responses unsatisfactory.
FESCO
In light of the investigation findings, the evidence on record, and FESCO’s failure to provide solid factual evidence or a valid legal defense in response to the show-cause notice, the Authority rejected the company’s reply dated March 13, 2025. Consequently, a fine of Rs 10 million has been imposed on the licensee under Section 27C(b) of the NEPRA Act and the NEPRA (Fine) Regulations, 2021, for non-compliance with the NEPRA Act, Terms & Conditions of the License, Performance Standards (Distribution) Rules 2005, the Distribution Code, the Power Safety Code 2021, the Consumer Service Manual, and other applicable regulatory documents.
FESCO has also been directed, under Section 27C(c) of the NEPRA Act, to implement the technical corrective and preventive measures communicated by Nepra on March 13, 2025, to rectify the deficiencies identified. These measures aim to ensure the safety of the public, employees, contractors and company facilities.
The licensee has been ordered to deposit the Rs 10 million fine into Nepra’s designated bank account within fifteen days of issuance of the order. Failure to comply will result in recovery of the outstanding amount under Section 41 of the NEPRA Act as arrears of land revenue or through any other lawful means. The Authority has also reserved the right to initiate further legal or regulatory action for non-compliance.
GEPCO
Similarly, based on the investigation findings, evidence on record and GEPCO’s failure to present any solid factual or legal defense in response to the show-cause notice of March 13, 2025, the Authority has rejected the company’s reply.
The Authority has imposed a fine of Rs 17.5 million on the licensee under Section 27C(b) of the NEPRA Act and the NEPRA (Fine) Regulations, 2021, for violations of the NEPRA Act, Terms & Conditions of the License, Performance Standards (Distribution) Rules 2005, the Distribution Code, the Power Safety Code 2021, the Consumer Service Manual, and other applicable regulatory documents.
Additionally, the Authority has directed GEPCO to compensate the family (next of kin) of Samar Abbas in accordance with the company’s Compensation Policy/Safety Manual, based on the identified findings and the negligence of line management, which failed to fulfill its duties to protect the public.
GEPCO has also been instructed to arrange employment for Samra Shahzadi, the wife of the victim Imran Khan, to help alleviate the financial hardship faced by the bereaved family due to the loss of their breadwinner. A compliance report must be submitted to Nepra within 60 working days.
LESCO
The Licensee has been directed to deposit the fine amount of Rs 30 million in the designated bank account of Nepra within fifteen days from the date of issuance of this Order. A copy of the paid instrument shall be submitted to the Registrar’s Office for record and verification.
Failure to comply with this directive within the stipulated period shall render the licensee liable for recovery of the outstanding amount under Section 41 of the NEPRA Act; as arrears of land revenue, or through any other lawful means deemed appropriate by the Authority.
Furthermore, the Authority reserves the right to initiate additional legal or regulatory proceedings against the licensee for non-compliance with this Order.
Copyright Business Recorder, 2025