National Electric Power Regulatory Authority

(NEPRA)
(Coordination & Implementation Department)

No. NEPRA/Dir (C & 1)/2023/ 2.2- January 18, 2023

Subject: APPROVED MINUTES/DECISION OF THE AUTHORITY REGULATORY

MEETING RM 22-691 REGARDING CASE OFFICER REPORT IN THE
MATTER OF SHOW CAUSE NOTICE ISSUED UNDER REGULATION 4(8) &
(9) OF THE NEPRA (FINE) REGULATIONS. 2021 TO CENTRAL POWER
GENERATION COMPANY LIMTED DUE TO PROLONGED FORCED
OUTAGE ON UNIT 14 OF GUDDU 747.

Enclosed please find herewith the Minutes/Decision of the Authority Regulatory Meeting
RIvI 22-691 held on December19, 2022 (signed minutes received on 18.01 .2023).

2. The sponsor and all concerned professionals are requested to submit progress/status
report to take iminecliate necessary action in compliance of timeline prescribed by the Authority in
the subject Minutes/Decision.

Director (C&I)
Distribution:

1. DG(M&E)
2. DG (Lic)
3. DG(CAD)
4. SA (M&E)
5. Director (M & E) J /Sponsor
6. Registar
7. ADG (Tariff)
8. ADG(M&E)
9. ADG (Legal)
10. Consultant (CIBCM)
11. Director (Tariff-I & II)

Copy to:
1. PS to Chairman
2. PS to M (Technical)
3. PStoM(Lic)
4. PS to M (Tariff and Finance)
 National Electric Power Regulatory Authority
(NEP RA)
Subject:- MINUTES/DECISIONS OF THE AUTHORITY REGULATORY MEETING
RM 22-691 REGARDING CASE OFFICER REPORT IN THE MATTER OF SHOW
CAUSE NOTICE ISSUED UNDER REGULATION 4(8) & (9) OF THE NEPRA
(FINE) REGULATIONS, 2021 '1, 0 CENTRAL POWER GENERATION
COMPANY LIMTED DUE TO PROLONGED FORCED OUTAGE ON UNIT 14
OF GUDDU 747
A meeting of the Authority on the subject was held on December 29, 2022. The
following Members of the Authority, pio1cssiona1s and officers participated in the meeting:

Authority
Mr. Tauseef II. Farooqi (:1-ia itLT1Il1
Mr. Rafique Ahmed Shaikh \ lemi )Ct vl&E/CA)
Engr. Maqsood Anwar Khan r\lem )cr (Lic)
Mr. Mathar Niaz Rana (risc) 1 cn- )er ('l'ariff/Finance)
Participants
Syed Safeer I-Iussain Rcgisi rat
Mr Kazi Imran .\ (M &l)/ Sponsor
Mr Mazhar Iqba1 Ranj ha \DG (M & E)
Mr. Khawar Hanif I )ircct or(M&E) / Co-Sponsor
Mr. Asjadullah Qureshi AD\ l&E)
Ms. Sundas Khaqan DI) (( ()ordinauofl)

2. The Authorit considered the working paper submitted by SA (M&E)/

Director (M &E).

3. The Sponsor informed that the \uthorit \' awarded generation license dated July 01, 2002
to Central Power Generation Company Limited (CPGCL/GENCO-Il).Unit 14 (243 MW) of
Guddu 747 went under k)rced OUriIC On lcl)rllar\' 12, 2021. It was observed that despite the
passage of considerable time the damaged Li iiii was not repaired. It is to be noted that Guddu
747 is one of the most economical pLiiiis, \vllerehv, its outage has led to the operation of
expensive power plants and has resulted in substantial financial impact. Consequently, the
forced outage of Guddu 747 has led to the increase in the generation cost and ultimately the
increase in consumer end tariff.

4. NEPRr\ vide its letter dated \ugusi 23, 2021 directed CPGCL to submit complete details
and nature of fault on Unit I-I of (uddu 7-7 under forced outage since February 12, 2021.
Furthermore, CPGCL vas directed to expedite the restoration of the damaged Unit at the
earliest.

5. The Sponsor highlighted that CPGCL vide its response, did not provide details of the
fault. Rather, the information provided regarding the fault was generic in nature and no facts
regarding the damage to the Lnii WClL con\cved. Additionally, CPGCL did not provide a
detailed restoration timelinc tbr rc'toraloii of the damaged Unit as was required by NEPRA.
/
Alinu/ej 01/luthori(y Reii/a/oij 3 /eei,iii R3i 22 69/ //d oil I)e,,iber 29, 2022 Page 1 of 3
 6. Accordingly, NEPRA issued an Explanation Let icr to M/s CPGCL on February 04, 2022,
under Regulation 4(1) & (2) of the NLPR\ (Fine) Regulations, 2021. Pursuant to the
directions of the Authority, a hearing was held on November 10, 2022. During the hearing the
case was discussed at length.

7. The Sponsor discussed his detailed analysis and concludcd that CPGCL failed to act in an
effective manner and reduce the time for restoration of the damaged Unit.

8. In light of above the Sponsor recommended to impose a line on CPGCL, as deemed

appropriate by the Authority, for violating Section 14(B)-4 of the NEPRA Act, read with
Clause SDC 1.4.1.2 of the Grid Code and for its failure to comply with the direction of the
Authority issued vide its tariff determination for insuring the power plant.

9. In the end the Sponsor requested the Authority for a decision.

Minu/es of/1 uthorily Regu/atoty A1eeiing RM 22- 69/ heM on i*iriither 29. 2022 Pate 2 qf 3
• DECISION OF AUTHORITY REGULATORY MEETING RM 22-691 HELD ON
DECEMBER 29. 2022.

10. The Authority after detailed deliberations upon the working paper decided to impose a
fine of Rs. 50 Million on the Central Power Generation Company Limited
(CPGCL/GENCO-Jl), for violating Section 14(B)-4 of the NEPRA Act, read with Clause
SDC 1.4.1.2 of the Grid Code, for the delay in restoration of the damaged Unit 14 (243 MW)
and for its failure to comply with the direction of the Authority issued vide its tariff
determination for insurini thc )\Vcr

Ralic1uc Ahmcd Shaikh

I\lcnibcr

j1itA

Engr. Maqsood Anwar Khan Mathar Niaz Rana (nsc)

Member Member

lauscet II la
(hairinu

Minutes ofAuthorily Re'u/aIoiy i\ tee/,ut R2vl 22 691 held on I)ecernber 29, 2022 Page 3 of 3