Nepra fined Hesco Rs 26m for transformer explosion

National Electric Power Regulatory Authority (Nepra) fined the Hyderabad Electric Supply Company (Hesco) on Monday for a total of Rs26 million After a transformer explosion in the Latifabad region of Hyderabad on July 22 that killed 10 persons and 12 injured.

On August 9, the regulator issued a show-cause notice to Hesco in connection with the deadly incident. Nepra stated that it had formed a three-member committee in accordance with Section 27A of the Nepra Act 1997, which conducted a thorough investigation into the incident, including visiting the site of the incident, recording statements from residents, and questioning the officials involved as well as officers from Hesco.

The committee also performed an investigation into the damaged transformer, paid a visit to the transformer’s maker, and submitted a detailed report to the regulatory authority. According to the report, a total of ten people, including a Hesco employee, were killed and another twelve were injured in the incident.

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Hesco was served with a show-cause notice by Nepra following the submission of the inquiry committee’s report. Nepra ordered the firm to promptly strengthen its overall distribution network in order to avoid another occurrence of this nature in the future. Hesco had been given 15 days to react to the notification in order for the regulator to make a decision in accordance with the legislation on the case.

Hesco was given the option to be heard by the regulator at the same time as the show-cause notice was served on them. On the basis of the evidence on file, Hesco’s submissions, and relevant provisions of the applicable laws, rules, and regulations, the National Environmental Protection Agency (Nepra) concluded that the company had failed to meet its statutory obligations to maintain safety standards as stipulated in the relevant laws, codes, and manuals.

As a result, Hesco was fined Rs26 million by the regulatory authority. The authorities took note of Hesco’s payment of Rs3.5 million in compensation to the family of a deceased employee and Rs750,000 in compensation to the families of nine other deceased employees.

So the National Employment and Promotion Authority (Nepra) has ordered Hesco to compensate the families of the deceased from the general public in a sum equivalent to the amount granted to the deceased employee’s family (Rs3.5m apiece) and to provide the regulator with documentary evidence of the same.

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