Nepra Upholds Rs10 Million Penalty on Hesco

The National Electric Power Regulatory Authority (Nepra) has upheld a Rs10 million penalty on the Hyderabad Electric Supply Company (Hesco), rejecting the utility’s review petition against an earlier decision over its failure to establish a mandatory safety directorate.

 

In an order issued on July 20, 2026, the regulator ruled that Hesco had not presented any new evidence or valid legal grounds to justify revisiting the penalty imposed in February 2025.

 

The case relates to Hesco’s non-compliance with Nepra’s Power Safety Code, which requires all electricity distribution companies to establish an independent Health, Safety and Environment (HSE) directorate. Despite repeated directives since 2021, the regulator found that Hesco failed to implement the requirement within the prescribed timeframe.

 

Nepra observed that the utility showed a lack of seriousness in meeting safety obligations, noting that it took nearly three years to initiate the process. The regulator maintained that timely compliance could have strengthened safety standards and reduced the risk of fatal incidents.

 

Although Hesco informed the authority that it had established a Health, Safety, Environment and Social Management (HSE&SM) Directorate and launched safety inspections and awareness initiatives, Nepra said the company failed to provide sufficient evidence demonstrating that the department was fully staffed, operational, and effectively performing its responsibilities.

 

The regulator also expressed concern over reports of 23 fatal accidents since December 2024, questioning the effectiveness of the utility’s safety measures. Nepra directed Hesco to pay the fine within 15 days, warning that recovery proceedings could be initiated under the Nepra Act in case of non-payment. The authority further stated that the company remains in violation of applicable performance, distribution, and power safety regulations.