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NEPRA received a complaint from Chief Executive Officer,
HESCO regarding un-authorized distribution/
sale of electric power by Fateh Power Project
to M/S Fateh Spinning-I and Fateh Spinning-II
located in the territory of HESCO.
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Case History
In the complaint, HESCO has informed that M/S
Fateh Power Project located at site area of
Hyderabad is involved in the un authorized
sale/distribution of electric power to M/S
Fateh Spinning-I and Fateh Spinning-II which
is violation of section 20 of NEPRA Act as
HESCO is the only licensee and has the
exclusive jurisdiction for distribution/sale
of electric power. Both of these spinning
units are located at different places at site
area, Hyderabad bearing plot No.A/42 and plot
No. A/47-A.4. For supply of electric power to
these units, they have installed 2 11 KV
lines. HESCO has further requested that
appropriate action be taken against Fateh
Power Project under NEPRA Act and rules.
HESCO also served notice to Fateh Textile
Mills Ltd under section 20 of NEPRA Act. It
was replied by Fateh Textile Mills Ltd that
due to non availability of sufficient space in
the boundaries of spinning units, they have
established the power plant on their nearby
plot. Furthermore they have established power
plant under self generation scheme for
consuming power in their own textile units and
accordingly they are supplying electricity to
their spinning units i.e. M/S Fateh Spinning-I
and Fateh Spinning-II and are not selling
electricity to any other consumer, hence
seeking of permission for self generation from
NEPRA is not applicable.
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Regulatory
Meeting RM-06-178
The case was presented to the Authority. Authority vide
RM-06-178 constituted a committee comprising
Senior Advisor (Technical), Director (CAD) and
Legal Advisor (AS). Also Director (CAD) and
Deputy Director (CAD) were directed to visit
the site and submit a report to the
committee.
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Site Inspection
Director (CAD) and Deputy Director (CAD) visited the site
and submitted report to the Committee. As per
the report “Fateh Power House and Fateh
Spinning-I and Fateh Spinning-II are located
at different plots. Their boundary walls are
different. Fateh Power House is supplying
power to both spinning units through two 11 KV
lines. Line supplying power to Fateh
Spinning-I is connected through 10 HT poles
crossing over the land owned by site
association. Line-II supplying power to Fateh
Spinning-II is connected through 16 HT poles
crossing over the land owned by site
association. Generating capacity of Fateh
Power House is 4 MW. All these plots are owned
by Fateh group. Fateh Power is not involved
in resale activity, however transmit of power
within HESCO territory without its NOC is an
illegal activity.
A meeting was also conducted by the committee with both the
parties at NEPRA head Office. Both the parties
were given option to have an amicable solution
as done in the case of Gul Ahmad Textiles V/S
KESC.
Similar kind of case Gul Ahmad Textile Mills
V/S KESC
There was a similar kind of case received earlier i.e. Gul
Ahmad V/S KESC regarding approval/licensee
requirement if power is supplied to two of its
own units through distribution lines crossing
over the public property. (The units are not
adjacent to each other) The case regarding
Gul Ahmad V/S KESC was decided in Authority
Regulatory Meeting RM 06-093. It was decided
that “Gul Ahmad Textile Mills Limited shall
hand over to KESC owner ship, operation,
management and control of the distribution
facility crossing over the public property
required to be used for movement and delivery
of electricity for consumption by Gul Ahmad’s
newly built stitching unit at mutually agreed
terms and conditions”
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Committees View
Fateh Power House is supplying power to both spinning
units through two 11 KV lines. Power house and
spinning units are situated at different plots
however these are owned by the same group.
From above it is clear that Fateh Power
Project is not involved in the resale of power
however transmission of power through two 11
KV lines is taking place in the site area
Hyderabad which is the legal territory of
HESCO without its NOC, as per the license
granted to HESCO for distribution of power.
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Committees
Recommendations
Fateh Group may hand over to HESCO owner ship, operation,
management and control of the
distribution facility crossing over the public
property/site area required to be used for
movement and delivery of electricity for
consumption by Fateh Spinning
Mills I & II at mutually agreed terms and
conditions. The same has already been done in
the case of GTML V/S KESC as
explained above at para-6.
Fateh Power House shall obtain a distribution license from
NEPRA subject to NOC from HESCO and may
continue to supply power to their units
i.e. Fateh Spinning Mills I & II .
Fateh Power House shall obtain a generation license and
Fateh Spinning Mills I & II will become
consumers of HESCO. HESCO will transport this
power from Fateh Power House to its consumers
i.e. Fateh Spinning Mills I & II.
Any other suggestion/solution by the Authority.
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The Authority in the matter decided as under:
“Fateh Group owning the Distribution facility involved,
be directed to immediately hand over the
distribution system to HESCO or arrive at a
mutually agreed working arrangement with HESCO
regarding surrendering of the area through
which the Fateh Power Group distribution lines
are crossing public property” |
