The National Electric Power Regulatory Authority has officially rejected a review petition filed by the Hyderabad Electric Supply Company, upholding a ten million rupee fine imposed on the distribution utility. The regulatory authority confirmed the penalty after determining that the company failed to comply with mandatory directives requiring the establishment of an independent safety directorate. In a formal order issued on July 20, 2026, the power sector regulator dismissed the motion for leave for review against its original decision from February 3, 2025, stating that the utility had failed to present fresh documentary evidence or valid legal grounds to warrant a reconsideration of the initial ruling.
The regulatory enforcement action stems from the distribution company’s ongoing non-compliance with the established Power Safety Code. Under these statutory guidelines, every power distribution utility operating in the country is required to create a dedicated, independent Health, Safety, and Environment directorate to oversee operational safety standards and reduce risk across electrical infrastructure. The regulator highlighted that the utility failed to satisfy this core requirement despite explicit regulatory instructions issued repeatedly since 2021. The authority pointed out that taking nearly three years to even initiate the setup of the directorate demonstrated clear negligence, noting that timely compliance could have prevented workplace hazards and preserved human lives.
The original ten million rupee penalty was levied after regulatory reviews revealed that the utility ignored multiple formal compliance notices, show-cause hearings, and extended deadlines. In its defense, the distribution company submitted a review petition claiming that its Board of Directors had formally approved the creation of a Health, Safety, Environment, and Social Management Directorate in December 2024. The utility contended that the unit became operational in early 2025 and that staff had initiated field safety inspections, public awareness drives, and other administrative compliance measures across its distribution territory.
However, after reviewing the submission, the regulatory body concluded that the utility provided insufficient documentary proof regarding the actual operational capacity of the safety unit. Specifically, the regulator identified gaps in verified staffing levels, organizational hierarchy, and overall functional efficacy. The authority emphasized that simply passing a board resolution or establishing a nominal department on paper does not satisfy legal compliance unless the directorate is fully operational, adequately staffed with qualified technical personnel, and actively executing its mandatory responsibilities in the field.
The regulator also expressed grave concern over the ongoing safety record of the utility, noting that twenty-three fatal accidents were reported across its jurisdiction since December 2024. Pointing to this tragic operational track record, the authority reinforced that structural compliance is critical for preventing avoidable casualties. The regulatory body directed the company to deposit the ten million rupee fine within fifteen days, warning that recovery proceedings under the Nepra Act will be initiated if the utility fails to comply. The authority reaffirmed that the utility remains in direct violation of the Performance Standards Rules, the Distribution Code, and the overarching Power Safety Code.
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