Violation of voltage & frequency limits: Rs 5 million fine for failure to follow rules

National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs 5 million on National Transmission and Despatch Company Limited (NTDCL) for non compliance of Performance Standards Transmission Rules particularly with respect to voltage and frequency fluctuations. The NTDC, being a transmission licensee, is required to submit Annual Performance Report to Nepra as per the Performance Standards and terms and conditions of its licence.
Based on the Annual Performance Reports provided by NTDC, a comprehensive analysis report was prepared by Nepra which highlighted that NTDC has prima facie violated the permissible voltage and frequency limits in the year 2013-14 as prescribed in the Performance Standards. Based on the findings of the analysis report, the Authority decided to initiate legal proceedings against NTDC. An explanation and show cause notice were issued to NTDC on July 31, 2015 and February 15, 2016 respectively.
Hearings in the matter were conducted on August 18, 2016 and on April 11, 2017. The Authority observed that the data submitted by NTDC in its annual performance report revealed that NTDC deviated from the permissible voltage limits, which has resulted in voltage profile as low as 180kV and 170kV instead of the nominal voltage of 220kV at Sibbi and Quetta Grid-stations, respectively.
A similar level of voltages was also noted at other grid stations in different areas of Pakistan. Further, violations regarding voltage limits variation showed an increase of 13% in 2013-14 as compared to the previous year. As a result, consumer end voltages were badly affected, with voltage as low as 170 volts instead of 220/230 volts.
The NTDC has failed to maintain the frequency limits as the frequency varied from 48.67 Hertz to 50.67 Hertz against the permissible frequency limits of 49.5 Hertz to 50.5 Hertz. Such variation in frequency limits resulted in partial system collapses (blackouts) and network splitting up to 10 times a year. These blackouts caused splitting of northern and southern parts of the network and areas from Guddu to Peshawar went under dark due to low frequency.
After considering all available facts, the Authority issued an explanation and a Show Cause Notice to NTDC for violations and subsequently imposed a fine of Rs 5 million on NTDC under Nepra Fine Rules in its order issued on January 10, 2017.
The NTDC submitted a review motion, against the order of the Authority. The matter was heard on April 10, 2017. After reviewing all relevant documents and applicable law, and hearing arguments forwarded by the petitioner, the Authority found that the NTDC has not provided sufficient or plausible ground that would result in modification or reversal of its order of January 10, 2017 after which the Authority decided to uphold its earlier decision to impose fine of 5 million rupees and rejected the review petition of NTDC.
Recently, the NTDC's system again failed due to heavy smog in Punjab which resulted in collapse of the entire power sector inter-connection including power plants.