ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has closed legal proceedings against Saif Power Limited over alleged delayed synchronization of its generating units following the countrywide power breakdown of January 23, 2023, observing that the matter did not warrant imposition of a regulatory penalty.
In a decision issued under NEPRA (Fine) Regulations, 2021, the Authority accepted Saif Power Limited’s response to a Show Cause Notice dated December 5, 2024, and closed the proceedings under Regulation 4(12) of the Fine Regulations, 2021.
The proceedings were initiated after NEPRA’s inquiry into the nationwide blackout of January 23, 2023, which plunged the entire country into darkness and took approximately 20 hours for complete restoration.
READ ALSO: Standalone power systems: Nepra proposes new regulatory framework
According to the regulatory record, the supply at Saif Power Limited’s bus bar was restored at 22:35 hours on January 23, 2023. The National Power Control Centre (NPCC) subsequently issued Notice to Synchronize (NTS) instructions for synchronization of Unit GT-1 at 23:26 hours on January 23 and Unit STG at 00:50 hours on January 24, 2023.
However, Saif Power Limited synchronized GT-1 at 01:30 hours on January 24, 2023, while the STG unit was synchronized at 01:08 hours on the same day.
NEPRA’s inquiry had initially observed that the units were synchronized after delays of two hours and four minutes and 18 minutes, respectively, against the NPCC instructions, allegedly hampering the restoration process.
The Authority had consequently initiated enforcement proceedings, maintaining that the licensee was bound to comply with instructions of the System Operator under the applicable legal and regulatory framework.
The proceedings were initiated on the basis of alleged violations of Section 14B(4) of the NEPRA Act, Rule 10(6) of the NEPRA Licensing (Generation) Rules, 2000, and various provisions of the Grid Code dealing with restoration of power supplies following a total or partial shutdown of the system.
An Explanation was issued to Saif Power Limited on September 22, 2023, which was subsequently rejected by NEPRA through an order dated December 5, 2024.
The Authority then issued a Show Cause Notice on the same date, seeking an explanation from the company over alleged non-compliance with NPCC synchronization instructions during the restoration of the power system.
In its response, Saif Power Limited challenged the proceedings on jurisdictional and legal grounds, arguing that synchronization instructions and associated obligations were exclusively governed by its Power Purchase Agreement (PPA).
The company maintained that the PPA itself provided remedies and penalties for deviations from dispatch instructions and synchronization timelines, and therefore NEPRA’s additional enforcement action was unwarranted.
It also argued that the Explanation had been issued approximately nine months after the incident, contrary to the requirements of the Fine Regulations, 2021.
Saif Power Limited further contended that the Power Purchaser had already penalized it for the alleged delayed synchronization, making any additional penalty by NEPRA tantamount to double punishment.
The licensee acknowledged that synchronization of GT-1 and STG had taken place with certain delays but attributed the timing to automated startup sequencing and system safety requirements necessary to operate the complex within its technical limits and in accordance with prudent utility practices.
NEPRA subsequently provided the company an opportunity of hearing under Regulation 4(11) of the Fine Regulations, 2021. The hearing was held on August 8, 2025, at the Authority’s head office in Islamabad, where representatives of Saif Power Limited participated and presented their submissions.
In its final analysis, the Authority observed that the matter relating to the Notice to Synchronize had arisen within an existing contractual framework that substantially addressed the consequences of deviations of this nature.
NEPRA further observed that the material available on record, considering the nature, extent and materiality of the alleged deviation, did not disclose circumstances warranting imposition of a penalty under the NEPRA Act.
The Authority also considered the proportionality of further enforcement action and emphasized the importance of maintaining a consistent regulatory approach in matters arising from the same system event, particularly where underlying facts and circumstances were materially comparable.
Accordingly, NEPRA accepted Saif Power Limited’s response to the Show Cause Notice and closed the proceedings under Regulation 4(12) of the Fine Regulations, 2021.
Copyright Business Recorder, 2026
Comments