islamabad
After waiting for many years, Nepra has finally decided to revoke the generation licence of Eastern Power Company Limited (EPCL) and initiate proceedings against it for not depositing annual fee for four consecutive years.
The authority in its decision last week also stopped the company to carry out generation business. Nepra had granted a generation license dated May 2007 to Eastern Power Company for producing 152.475 MW, at 4km Pasrur city, District Sialkot.
As per rules, the company had to deposit the annual fee, but it failed to deposit fee for the years 2008-09, 2010-11, 2011-12, and 2012-13, and the total outstanding amount accumulated to Rs.6,888003.
According to Nepra record, in view of the persistent failure to deposit dues, the authority on November 2012 decided to initiate proceedings against EPCL for the recovery of required amount pending on the account of annual fee, issuing an explanation on December 2012, which was not responded by the company.
The authority in 2013 decided to issue a show cause notice and decided to impose another Rs100,000 fine on account of default of payment.
Nepra, despite getting no response from the company, waited for another one year, and in May 2014 decided to revoke the license for recovery of outstanding license fee for 2013-14.
According to NEPRA record, Eastern Power Company was consisting of leading industrial and power plant conglomerates from Pakistan and Turkey, and was granted discounted tariff on the basis that the power plant was old.
The estimated cost of the project was calculated at $118 million, in 2007, with an expected life of 25 years. The primary fuel for this project was RFO (furnace oil).
Why no disciplinary action was taken against the company for not depositing dues for four consecutive years, how much total power the plant generated, how much money was paid, and what is the status of the power plant presently, these basic questions are not explained in the detailed decision.
It is pertinent to mention that the company was granted license to generate power till 30 October, 2028.