NEPRA has imposed heavy fines on SEPCO and HESCO for failing to reduce power losses and improve recovery. The fines also cover violations of safety standards and improper earthing of electric poles. Together, the two state-owned distribution companies in Sindh have been fined over Rs 95 million.
According to official orders, SEPCO was fined Rs 70 million under three different decisions, while HESCO was fined Rs 25 million in a single decision. NEPRA found both companies failed to reduce technical and commercial losses and showed no improvement in their revenue recovery for FY 2023 compared to FY 2022.
SEPCO alone was fined Rs 50 million for these failures. An additional Rs 20 million was imposed on SEPCO — Rs 10 million for not ensuring proper earthing of poles, and Rs 10 million for violating safety standards. NEPRA highlighted that SEPCO had failed to meet even the basic requirements for public and employee safety.
NEPRA also noted that both SEPCO and HESCO failed to provide satisfactory responses to their show-cause notices. SEPCO, in particular, did not comply with NEPRA regulations regarding infrastructure maintenance. The authority directed SEPCO to complete earthing of all remaining steel structures and PCC poles within three months.
Lastly, NEPRA has ordered both companies to deposit the fines within 15 days in the designated bank accounts. This move reflects NEPRA’s growing scrutiny of poor utility performance and its intent to enforce accountability within Pakistan’s power sector.