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MEPCO, HESCO, TESCO, SEPCO hit with Rs 53 million fine for safety lapses

by AMG
February 4, 2025
in Finance
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MEPCO, HESCO, TESCO, SEPCO hit with Rs 53 million fine for safety lapses
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ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed fine of Rs 53 million on MEPCO, HESCO, and TESCO and SEPCO for failing to take appropriate measures to stop fatal incidents and establishment of Safety Directorate in their respective jurisdictions.

According to the details, dring the investigation conducted by NEPRA with respect to fatal accidents in the service territories of DISCOs including the Licencees, it was revealed that one of the major causes of electrocutions is lack of earthing/grounding of poles/structures. The Authority while taking notice of such safety hazards, directed all the DISCOs including the Licencee through letter of June 07, 2022, followed by a reminder dated July 06, 2022, to submit the data pertaining to the total number of poles/structures, number of poles/structures installed in its service territory and number of poles/structures lacking earthing. Accordingly, the Licencee submitted the required information vide its email dated June 20, 2022.

The Authority after carefully examining the data submitted by the Licencees called CEO of the Licencee through a letter of September 26,2022, for a meeting/hearing with the direction to come up with a comprehensive plan along with specific timelines pertaining to the execution of earthing/grounding of HT/LT poles/structures in its service territory, in order to avoid fatal accidents in future.

The Authority also directed that the Licencee shall submit the response to specific queries/questions including, SOP of the Licencee pertaining to earthing/grounding of the poles/structures, scope of earthing in the contracts at the time of their installation, checking of poles/structures grounding at the time of handing over of the system from construction to operation departments, tackling these hazards in the absence of proper earthing/grounding, and time required to execute the earthing/grounding of 100% of the remaining poles/structures.

After completion of legal formalities, the Authority held that the Licencee has submitted that the Authority is empowered in observing that the Licencee had contravened the provisions of Rule 4(g) of the NEPRA Performance Standards (Distribution) Rules as the said provision is only attracted when there is a failure on the part of Distribution Company to comply with Overall Standards 7-(Safety (OS7). The Licencees have further submitted that it is not an admitted fact as the distribution facilities of the Licencees have been constructed, operated, controlled, and maintained in a manner consistent with the Distribution Code, Power Safety Code, Consumer Service Manual, and other applicable documents.

After due deliberations and taking into account the submissions/arguments made by the Licencees during the hearing and in light of the NEPRA Act, NEPRA (Fine) Regulations, 2021, and other applicable documents, the Authority is 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 fines amounting to Rs ten million on three Discos Mepco, Sepco and Tesco due to its failure pertaining to 100% execution of earthing/grounding of its HT/LT poles/structures in its service territory.

The Authority has further directed the Licencee to earth/ground all remaining (100%) steel structures within three months and PCC Poles within one year. Failure to comply with the directions of the Authority may lead towards further penalty on the licencees which will be decided after the completion of specified timelines.

NEPRA has also imposed Rs 13 million on MEPCO under the NEPRA Act, and NEPRA (Fine) Regulations, 2021 on account of non-compliance by the Licencee with NEPRA Act, Terms & Conditions of its Licence, Performance Standards (Distribution) Rules 2005, Distribution Code, Power Safety Code, Consumer Service Manual and other applicable documents whereas Rs 10 million also been imposed on HESCO on this account.

Tags: neprasepcotesco

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