NEPRA Drops Show-Cause Notice Against Lalpir Power Company Over 2023 Blackout Delay

New-Nepra

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has disposed of a show-cause notice issued to Lalpir Power Company Limited (LPCL) in connection with its alleged delayed restart during the nationwide power breakdown in January 2023.

The countrywide blackout occurred on January 23, 2023 at 07:34:43, plunging the entire national grid into darkness. Power restoration across the system was completed after approximately 20 hours, with full recovery achieved on January 24, 2023.

Following the incident, NEPRA constituted an Inquiry Committee to investigate the causes of the breakdown. The committee conducted site visits to power plants, grid stations, and relevant offices, and reviewed operational data and relevant documentation.

According to the National Power Control Centre (NPCC), supply at LPCL’s bus bar was restored at 00:03 on January 24, 2023. The company was subsequently issued a Notice to Synchronize (NTS) at 07:13, instructing it to bring its plant back online. However, LPCL synchronized its facility at 11:22, resulting in a delay of 4 hours and 9 minutes.

Initially, NEPRA observed that the delay could constitute a prima facie violation of the Power Purchase Agreement (PPA), the NEPRA Act, Generation Licensing Rules, and the Grid Code, potentially affecting system restoration efforts.

The regulator later initiated proceedings under the NEPRA (Fines) Regulations 2021 and issued a show-cause notice to the company in September 2023. LPCL responded in October 2023, but its explanation was rejected in December 2024.

During proceedings, LPCL argued that NEPRA lacked jurisdiction over operational matters governed by the Power Purchase Agreement, which contains its own enforcement mechanism. The company maintained that imposing additional penalties under NEPRA regulations would amount to double punishment, as it had already been penalized by the power purchaser.

LPCL further stated that the delay was caused by a prolonged shutdown of nearly 100 days, requiring careful technical and safety procedures before restart, in line with OEM guidelines and prudent utility practices. It added that both the power purchaser and NPCC had treated the delay as a forced outage and confirmed that the plant’s response was operationally appropriate.

After reviewing the submissions and circumstances, NEPRA closed the proceedings against LPCL, effectively dropping the show-cause notice.

Story by Mushtaq Ghumman

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