Nepra Fines NGC Over Power Planning Non-Compliance

The National Electric Power Regulatory Authority (Nepra) has slapped a Rs10 million fine on the National Grid Company (NGC), previously known as the National Transmission and Despatch Company, for repeatedly failing to submit mandatory data for the Integrated System Plan (ISP) 2024–34 despite continuous regulatory instructions over the past year.

In a detailed ruling issued on Friday, the regulator stated that NGC failed to fulfill its regulatory responsibilities and did not provide a satisfactory explanation in response to a show-cause notice. Nepra determined that enforcement action was justified following the completion of due legal process.

The authority said the matter surfaced during public hearings and consultations held in August 2024 on the 10-year generation and transmission expansion roadmap. Nepra had raised objections to the base assumptions of the Indicative Generation Capacity Expansion Plan (IGCEP 2024), particularly the system load factor set at 60%, and instructed NGC to revise it upward to 70%. However, the required addendum was never submitted despite repeated reminders.

Following prolonged non-compliance, Nepra initiated formal legal proceedings against NGC in December 2024. In its defence, the company argued that the proposed changes were under review at multiple levels, including the Power Division, the Special Investment Facilitation Council, and the Prime Minister’s Office. It also pointed to revisions in project costs and load projections as reasons for the delay.

Nepra dismissed these justifications, stating that NGC neither flagged the issues in a timely manner nor provided adequate responses to regulatory queries. The regulator noted that submission deadlines were clearly outlined in official correspondence and planning documents, contradicting NGC’s claim that no specific timeline had been communicated.

Although NGC officials accepted responsibility for the delays and denied any deliberate disregard for regulatory directives, Nepra ruled that the lapse constituted wilful default. The authority said the penalty was imposed to protect the credibility of the planning process and enforce regulatory discipline.