The National Electric Power Regulatory Authority (NEPRA) has imposed a Rs. 100 million fine on CPPA-G.

The penalty relates to the Central Power Purchasing Agency’s failure to impose liquidated damages on WAPDA.

According to the regulatory order, CPPA-G did not enforce the relevant provisions for liquidated damages. The regulator took action after reviewing the matter.

NEPRA directed CPPA-G to deposit the Rs. 100 million penalty in the designated bank. The payment must be made within 15 days of receiving the order.

A copy of the order was also sent to the chief executive officer of CPPA-G. The agency is responsible for several important commercial functions in Pakistan’s power sector.

CPPA-G serves as the government’s central power purchasing and market settlement agency. It purchases electricity on behalf of distribution companies across the country.

The agency also manages billing, payments, and settlements with power producers. Its responsibilities include commercial matters linked to electricity procurement.

The current framework also covers power purchase arrangements involving WAPDA’s hydropower generation. CPPA-G manages the commercial aspects of these arrangements.

The NEPRA order followed concerns over the enforcement of contractual provisions. These provisions require applicable liquidated damages to be imposed in certain circumstances.

The case also included a dissenting note from the NEPRA chairman. His observations focused on the possible financial consequences of enforcing the damages.

The chairman estimated WAPDA’s potential claims for late payment interest at around Rs. 175 billion. In comparison, CPPA-G’s liquidated damages claims were estimated at approximately Rs. 77 billion.

He observed that enforcing liquidated damages at this stage could have wider financial effects. It could potentially lead to larger late payment interest claims by WAPDA.

The chairman further noted the possible impact on the power sector’s financial position. He warned that the resulting net burden could eventually be added to circular debt.

According to his note, such an outcome would not serve the broader interests of the power sector. The observation highlights concerns about the financial consequences of the dispute.

The decision places CPPA-G under an obligation to comply with the regulator’s order. The agency must pay the imposed fine within the specified period.

The NEPRA action also highlights the regulator’s role in overseeing the electricity sector. Regulatory orders can address compliance issues involving power sector entities.

CPPA-G remains a key institution in electricity procurement and market settlements. Its commercial role connects distribution companies with power producers.

The latest order therefore involves both regulatory compliance and wider financial considerations. Further developments will depend on implementation of the regulatory decision.

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For now, CPPA-G has been directed to deposit the Rs. 100 million fine within 15 days. The order formally records the regulator’s action over the liquidated damages issue.