NEPRA Fines CPPA Rs. 10 Crore for ‘Forgiving’ WAPDA

For context, the National Electric Power Regulatory Authority (NEPRA) has imposed a Rs.

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• The National Electric Power Regulatory Authority (NEPRA) has imposed a Rs.
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• NEPRA directed CPPA-G to deposit the fine in the designated bank within 15 days of receiving the order.
• According to The NEPRA chairman, enforcing liquidated damages at this stage could trigger significantly larger late payment interest claims by WAPDA.

For context, the National Electric Power Regulatory Authority (NEPRA) has imposed a Rs. 100 million fine on the Central Power Purchasing Agency (CPPA-G) for failing to impose liquidated damages on WAPDA.

According to NEPRA's order, CPPA-G failed to enforce applicable provisions requiring liquidated damages against WAPDA, prompting the regulator to take action against the power purchasing agency.

NEPRA directed CPPA-G to deposit the fine in the designated bank within 15 days of receiving the order. The order was additionally forwarded to the chief executive officer of CPPA-G. Fuel Now Rs. 100 More Expensive in Pakistan Since July.

Meanwhile, the NEPRA chairman additionally recorded a dissenting note. He remarked WAPDA's potential claims for late payment interest are estimated at around Rs. 175 billion, compared with approximately Rs. 77 billion in liquidated damages claims by CPPA-G.

According to He further, the resulting net financial burden could ultimately be went on to circular debt, which would not be in the interest of the power sector.

CPPA-G acts as the government's central power purchasing and market settlement agency, procuring electricity on behalf of distribution firms and handling billing, payments and settlements with power producers.

Under the current framework, CPPA-G handles the commercial aspects of power purchase arrangements involving WAPDA's hydropower generation. Stay Connected with ProPakistani.

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For now, NEPRA Fines CPPA Rs. 10 Crore for 'Forgiving' WAPDA remains the part of the story worth watching, and further updates are likely as more details are confirmed.