The National Electric Power Regulatory Authority (NEPRA) has imposed a Rs. 100 million fine on the Central Power Purchasing Agency-Guarantee (CPPA-G) over its failure to enforce liquidated damages against WAPDA.
The regulatory action follows a finding that CPPA-G did not apply the relevant contractual provisions requiring liquidated damages to be imposed on WAPDA.
According to NEPRA’s order, the power purchasing agency was required to enforce the applicable provisions but failed to do so. The regulator subsequently took action and issued a financial penalty against CPPA-G.
The Rs. 100 million penalty is equivalent to Rs. 10 crore, making it a significant regulatory action involving two major entities connected with Pakistan’s power sector.
NEPRA has directed CPPA-G to deposit the fine into the designated bank account within 15 days of receiving the order.
A copy of the regulatory order has also been forwarded to the Chief Executive Officer of CPPA-G for compliance and necessary action.
Liquidated damages are generally contractual financial payments that may become applicable when a party fails to meet specified obligations under an agreement. In the power sector, such provisions can form part of arrangements governing performance and contractual responsibilities.
The latest NEPRA order highlights the regulator’s role in monitoring compliance with rules and contractual requirements within Pakistan’s electricity market.
CPPA-G plays a central role in the country’s power purchasing arrangements, while WAPDA remains an important institution within Pakistan’s electricity and water infrastructure. Any regulatory dispute involving the two organizations can therefore attract attention from power-sector stakeholders.
NEPRA’s action indicates that regulatory authorities expect CPPA-G to enforce applicable contractual provisions rather than waive or overlook financial consequences where they are required under the relevant agreements.
The regulator has specified a 15-day deadline for payment of the penalty. CPPA-G will therefore be required to comply with the order within the prescribed period unless the order is otherwise challenged or modified through an applicable legal or regulatory process.
The development comes amid continued efforts to improve governance, accountability and contractual compliance across Pakistan’s power sector.
Regulatory enforcement is particularly important in the electricity market because contractual obligations can have financial implications for power purchasers, generators and other stakeholders.
The NEPRA order does not merely concern the fine itself but also draws attention to the responsibility of power-sector institutions to follow the terms and conditions governing their agreements.
Further developments could emerge if CPPA-G takes any action concerning the regulatory order or provides additional clarification regarding the circumstances surrounding the liquidated damages.
For now, NEPRA has directed CPPA-G to pay Rs. 100 million within 15 days, citing the agency’s failure to impose applicable liquidated damages on WAPDA.
The decision adds another regulatory development to Pakistan’s power sector and places renewed focus on contractual enforcement and institutional accountability.
