Nepra Fines K-Electric Rs25 Million Following January 2023 Power Breakdown
The National Electric Power Regulatory Authority (Nepra) has imposed a Rs25 million fine on K-Electric (KE), the power utility serving karachi, for failing to meet its operational responsibilities during a nationwide power breakdown in January 2023.
According to a Nepra notification,the penalty stems from KE’s unsuccessful attempts to restore power using “black start facilities” – systems designed to restart power generation after a complete blackout. These attempts were hampered by frequent tripping of KE’s power plants, indicating a lack of adequate preparation and testing.
“Repeated failed attempts on the black start facilities of moast of the power plants in the licensee’s (KE) fleet and their frequent tripping indicates the lack of mock testing of the black start facility by the licensee,” the notification stated. Nepra emphasized that regular mock testing is “a crucial step for the preparation of the licensee and all relevant stakeholders to handle a blackout scenario, as it ensures the healthiness of [the] black start facility.”
KE, in its response, attributed the grid collapse to issues within the National Transmission and Dispatch Company’s (NTDC) network.However, Nepra dismissed this argument, stating, “While it is true that interconnected power systems are vulnerable to disruptions in the larger grid, the licensee’s argument that its stability is entirely dependent on NTDC’s network raises concerns about its own preparedness as a vertically integrated utility.”
Nepra determined that KE’s actions violated Section 14B(4) of the Nepra Act, Rule 10(6) of the Nepra Licensing (Generation) Rules, 2000, and several clauses within the Grid Code (OC 8.1.1, 8.1.4, 8.2.1, 8.2.2 and 8.2.3). The Rs25 million fine is payable within 15 days.
Failure to remit the fine will result in Nepra recovering the amount as arrears of land revenue, utilizing Section 41 of the Nepra Act and relevant provisions of the Fine Regulations, 2021.
A KE spokesperson described the penalty as “surprising” and stated, “K-Electric is currently reviewing the honourable authority’s detailed decision and will determine the future course of action accordingly.”
