NEPRA Slaps Rs. 100 Million Fine on HESCO

The National Electric Power Regulatory Authority (NEPRA) has taken stern action against the Hyderabad Electric Supply Company (HESCO), imposing a fine of Rs. 100 million for continuing with excessive loadshedding on commercial grounds. According to the regulator, HESCO has been carrying out outages based on aggregate technical and commercial (ATC) losses even though there was no shortage in power supply. The practice, NEPRA said, was in direct violation of the law. This is not the first time HESCO has faced penalties. In April 2024, the utility was fined Rs. 50 million for the same reason. Instead of paying the penalty or ending the practice, the company filed an appeal and continued with the outages. After issuing a show-cause notice and completing legal proceedings, NEPRA ruled that the appeal did not shield HESCO from accountability. The authority has now also announced a daily penalty of Rs. 100,000 starting April 4, 2024, until the company stops ATC-based loadshedding.