ISLAMABAD:The National Electric Power Regulatory Authority (NEPRA), has imposed a fine of Rs25 million on K-Electric Limited (KE) for failing to perform system restoration duties and comply with grid operation standards following the nationwide power breakdown of January 23, 2023.
In an order issued on October 8, 2025, NEPRA concluded that K-Electric violated key provisions of the NEPRA Act, the Generation Licensing Rules, 2000, and clauses of the Grid Code related to power restoration and system reliability. The regulator said the company’s inability to maintain “adequate black start readiness” and conduct required mock tests had directly contributed to extended outages across Karachi after the collapse of the national grid.
The 2023 breakdown, which began at 7:34 a.m. on January 23, plunged the entire country into darkness and took nearly 20 hours to fully restore. NEPRA’s inquiry found that K-Electric, which was synchronized with the National Transmission and Dispatch Company (NTDC) network, was drawing 708 megawatts (MW) from the national grid while generating another 538 MW independently. When NTDC’s connection tripped, K-Electric’s system failed to sustain itself, triggering cascading shutdowns across its generation fleet.
According to the authority’s findings, tripping at key power facilities including Bin Qasim Power Station (BQPS-III), Tapal, and the Site plants — all equipped with black start capability — lacked credible technical justification. Despite multiple restart attempts, most black start units failed to sustain operations in isolation, severely delaying Karachi’s power restoration. NEPRA stated that the pattern of repeated tripping reflected inadequate mock drills and poor contingency preparedness for blackout scenarios.
The regulator said K-Electric had breached Section 14B(4) of the NEPRA Act, Rule 10(6) of the Generation Licensing Rules, and clauses OC 8.1.1, 8.1.4, 8.2.1, 8.2.2, and 8.2.3 of the Grid Code. These provisions obligate power producers to maintain readiness for total or partial shutdowns, ensure timely power restoration, and coordinate with the national grid operator for safe system recovery.
In its defense, K-Electric attributed the blackout to a disturbance in NTDC’s 500kV transmission network, which caused a cascading failure in its own system. The utility argued that because it operates within an interconnected grid, power interruptions were inevitable in the event of national grid disruptions. It also claimed that the event occurred during a low-demand winter period, when system inertia is limited, amplifying the disturbance. K-Electric further contended that its plants had operational black start systems and said NEPRA’s proceedings were “time-barred” under fine regulations.
However, NEPRA dismissed these explanations, stating that as a vertically integrated utility, K-Electric was responsible for maintaining system resilience regardless of national grid fluctuations. The regulator noted that black start systems’ repeated failures, despite earlier drills, revealed major operational and technical shortcomings. NEPRA also rejected the time-barred argument, ruling that its regulatory timeline was “directory in nature” and that action had been initiated within a valid period.
The authority’s decision emphasized that K-Electric’s inability to independently restore power demonstrated “systemic weaknesses in contingency planning, maintenance, and black start testing.” It concluded that the company “failed to perform its operations and discharge its responsibilities in accordance with applicable laws, rules, and Grid Code.”
NEPRA ordered K-Electric to pay the Rs25 million fine within 15 days and to submit payment proof to the regulator’s registrar. The order warned that failure to comply would result in recovery of dues as arrears under Section 41 of the NEPRA Act. The decision was signed by Chairman Waseem Mukhtar and Members Rafique Ahmed Shaikh (Technical), Amina Ahmed (Law), and Engr. Maqsood Anwar Khan (Development).
Responding to the development, a K-Electric spokesperson said the company found the penalty “surprising,” adding that the January 2023 blackout “was caused by a disturbance in the NTDC system.” The spokesperson said K-Electric was reviewing NEPRA’s detailed decision and “will determine the future course of action accordingly.”
