ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed a combined fine of Rs 50 million on CPPA-G and the National Grid Company (NGC) for failing to comply with mandatory operational procedures, following a nationwide power system collapse that plunged Pakistan into darkness.
The National Electric Power Regulatory Authority (NEPRA) has taken strict action against key power sector entities, imposing fines of Rs 25 million each on the Central Power Purchasing Agency–Guaranteed (CPPA-G) and the National Grid Company (NGC) for repeated regulatory violations and operational inefficiencies.
The fines stem from NEPRA’s findings following the nationwide power outage on January 1, 2021, which left millions of Pakistanis without electricity for nearly 20 hours. The system was fully restored on January 10, 2021. In response, NEPRA had formed an Inquiry Committee (IC) to investigate the incident and submitted a comprehensive report detailing lapses in operational procedures across multiple entities.
According to NEPRA, several power plants failed to submit mandatory Operating Procedure (OP) manuals as required under Rule 16(1) of the NEPRA Licensing (Generation) Rules, 2000. Despite repeated instructions, CPPA-G and NGC did not finalize the OPs or sign the required Black Start Procedures with plants equipped to restore the grid, including Orient Power, Sapphire Electric, Halmore Power, Engro Powergen Qadirpur, Rousch Power, and Foundation Power.
During hearings and professional-level meetings in 2022 and 2023, both entities were repeatedly instructed to submit a concrete timeline for OP finalization and activation of Black Start facilities. NEPRA observed that, as of the latest review, CPPA-G had completed only 75 of 112 OPs, leaving over one-third incomplete, while NGC had signed just 73 of 117 OPs, with 44 still pending or under review.
NEPRA rejected CPPA-G’s claims that delays were due to Power Purchase Agreement (PPA) disputes, emphasizing that internal inefficiencies and non-compliance cannot be justified by contractual ambiguities. Similarly, NGC’s argument that it lacked authority to compel power plants to comply was dismissed, as the PPA framework provides clear mechanisms for dispute resolution and procedural finalization.
Following detailed deliberations, NEPRA concluded that both CPPA-G and NGC had violated Section 48 of the NEPRA Act and the Fine Regulations, 2021. Each entity has been ordered to deposit Rs 25 million within 15 days into the designated NEPRA bank account. Failure to comply will result in recovery under Section 41 of the NEPRA Act, treating the amount as arrears of land revenue.
The fines serve as a stern warning to power sector operators about the critical importance of compliance with operational procedures, timely submission of technical documents, and proactive coordination among stakeholders to prevent future grid failures. NEPRA emphasized that systemic accountability is essential to safeguard electricity supply and protect consumers from avoidable outages.
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