ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has closed show cause notice issued to Lalpir Power Company Limited (LPCL) over its alleged failure to timely restart operations following the nationwide power system collapse in January 2023.
According to official details, the countrywide blackout occurred on January 23, 2023 at 07:34:43 hrs, plunging the entire nation into darkness. The system was restored after approximately 20 hours on January 24, 2023. NEPRA, as the sector regulator, took cognizance of the incident and constituted an Inquiry Committee (IC) to investigate the causes. The committee conducted site visits to power plants, grid stations, and relevant offices, and examined documents to reach its conclusions.
Data provided by the National Power Control Centre (NPCC) indicated that power supply at LPCL’s bus bar was restored at 00:03 hrs on January 24, 2023. The company was instructed through a Notice to Synchronize (NTS) at 07:13 hrs to bring its plant online. However, LPCL synchronized its complex at 11:22 hrs, reflecting a delay of 4 hours and 9 minutes. NEPRA initially observed that this delay constituted a prima facie violation of the Power Purchase Agreement (PPA) and relevant provisions of the NEPRA Act, Generation Licensing Rules, and the Grid Code, potentially hampering the system restoration process.
Subsequently, NEPRA initiated legal proceedings under the NEPRA (Fines) Regulations, 2021, and issued an explanation notice to the company on September 22, 2023. LPCL responded on October 9, 2023; however, the Authority rejected the reply through an order dated December 5, 2024.
In its defence, LPCL contended that NEPRA lacked jurisdiction, arguing that operational obligations related to dispatch and synchronization are exclusively governed by the PPA, which provides its own enforcement and penalty framework. The company maintained that Regulation 4 of the Fines Regulations applies only to violations of statutory instruments such as the NEPRA Act, rules, regulations, and the Grid Code — not contractual obligations under the PPA. LPCL further argued that it had already been penalized by the Power Purchaser for the delayed synchronization in accordance with the PPA, and any additional penalty by NEPRA would amount to double punishment, violating principles of natural justice and constitutional protections.
The company also explained that the delay was due to an extended shutdown of nearly 100 days without dispatch, necessitating strict safety and operational procedures before restart. It stated that all actions were taken in line with prudent utility practices, OEM guidelines, and relevant legal provisions. Both the Power Purchaser and NPCC reportedly confirmed that the plant’s response was appropriate and that the delay was treated as a forced outage.
Copyright Business Recorder, 2026
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