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The National Electric Power Regulatory Authority (NEPRA) has imposed a hefty fine of Rs 25 million on the Hyderabad Electric Supply Company (HESCO) for conducting load shedding based on system losses and violating distribution regulations.
According to the official statement released by NEPRA, the penalty was enforced following a formal investigation and the issuance of a show-cause notice to HESCO. The power regulator found that the company had been carrying out “AT&C-based load shedding” — a practice that involves suspending electricity supply in areas with high aggregate technical and commercial (AT&C) losses, disproportionately impacting consumers in already underserved localities.
The order stipulates that HESCO will be required to deposit a daily penalty of Rs 100,000, starting retroactively from April 4, 2024, until the utility company fully complies with the relevant distribution standards and consumer service obligations.
This action by NEPRA follows a broader regulatory crackdown. Earlier this month, on September 12, NEPRA had fined two other distribution companies — GEPCO and SEPCO — a collective amount of over Rs 250 million for overbilling and similar violations. GEPCO was fined Rs 200 million for excessive billing, with orders to refund the undue amounts to consumers. Meanwhile, SEPCO was subjected to a daily penalty for continuing to implement illegal load-shedding tactics despite prior warnings.
NEPRA’s recent “Performance Evaluation Report” for FY2023–24 outlined that multiple distribution companies — including HESCO and SEPCO — were in breach of key performance indicators related to uninterrupted supply, loss reduction, and consumer complaint redressal. The report emphasized the urgent need for structural reforms in Pakistan’s power distribution sector to ensure fairness and transparency.
Energy experts have welcomed NEPRA’s enforcement actions, terming them a long-overdue step toward accountability in the power sector. “Targeting consumers in high-loss areas with extended power cuts is not just unfair, it’s a violation of regulatory ethics,” said an energy policy analyst in Karachi. “This fine sends a strong message that regulatory impunity will no longer be tolerated.”
In its notice to HESCO, NEPRA also directed the utility to improve service delivery, enhance line maintenance, reduce system losses, and maintain equitable supply across all areas regardless of their commercial loss ratios. The regulator warned that further non-compliance could result in additional penalties or even the suspension of HESCO’s distribution license.
Despite repeated directives, HESCO has reportedly failed to implement operational reforms or invest adequately in grid infrastructure. Consumer complaints about prolonged outages, inaccurate billing, and a lack of grievance redressal mechanisms have continued to rise.
As Pakistan’s energy sector grapples with rising demand, circular debt, and infrastructural constraints, NEPRA’s actions represent a significant regulatory assertion aimed at protecting consumer rights and ensuring that power utilities operate within the framework of fairness and performance accountability.
The Rs 25 million fine against HESCO marks another milestone in NEPRA’s increasingly firm stance against poor utility performance and consumer exploitation. Whether this penalty will bring about real reform within HESCO remains to be seen, but it is clear that the regulatory body is no longer willing to turn a blind eye to systemic failures in electricity distribution.
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