ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs 25 million on the Central Power Purchasing Agency–Guaranteed (CPPA-G) and National Grid Company (NGC) each for failing to comply with the Nepra’s regulations.
According to details shared by Nepra, a countrywide power system collapse occurred on January 1, 2021, plunging the entire nation into darkness. The system was fully restored on January 10, 2023 after nearly 20 hours of outage. Nepra took serious notice of the incident and constituted an Inquiry Committee (IC), which submitted a comprehensive report. Based on its findings, Nepra initiated legal proceedings against several power plants for failing to submit mandatory Operating Procedure manuals as required under Rule 16(1) of the NEPRA Licensing (Generation) Rules, 2000.
Explanations and later Show Cause Notices were issued to the concerned plants. Hearings were held on September 6, 7, and 8, 2022, attended by representatives of the National Power Control Centre (NPCC), the System Operator, and CPPA-G. Several plants argued that they had already submitted draft OPs to NPCC and CPPA-G, but these had not been signed. Nepra subsequently directed NPCC and CPPA-G to finalize all OPs in coordination with stakeholders, and to sign Black Start Procedures with plants equipped with the relevant facilities, including Orient Power, Sapphire Electric, Halmore Power, Engro Powergen Qadirpur, Rousch Power, and Foundation Power, within one month. The directives, however, were not complied with.
During a public hearing on February 28, 2023, regarding the Fuel Charges Adjustment (FCA) for DISCOs, Nepra again noted the lack of progress. A joint professional-level meeting between Nepra, NPCC, and CPPA-G was held on March 10, 2023, during which compliance was reiterated. NPCC and CPPA-G were formally instructed on March 22, 2023, to submit a concrete plan with timelines for finalizing OPs and activating the available Black Start facilities.
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Nepra later observed with concern that neither the OPs nor the Black Start Procedures had been finalized despite significant time having passed. The Authority found CPPA-G in prima facie violation of Section 48 of the NEPRA Act for failing to comply with its repeated directives, and accordingly initiated proceedings under the NEPRA (Fine) Regulations, 2021.
The CPPA-G submitted its response on December 29, 2023, but the Authority rejected the explanation after detailed deliberations. A Show Cause Notice dated October 11, 2024, was then issued, following an earlier explanation sent on December 12, 2023.
In its reply, CPPA-G argued that compliance with Rule 16(1) of the NEPRA Licensing (Generation) Rules, 2000, falls primarily on the Generation Licensees, and that OPs under Power Purchase Agreements (PPAs) differ in scope. CPPA-G also pointed to changes in NPCC’s list of plants requiring Black Start capability, noting that the revised list issued on March 27, 2023, focused on plants near load centres to facilitate faster system restoration.
However, Nepra noted that only 75 out of 112 OPs (around 67 percent) have been finalized, leaving over one-third incomplete — an unacceptable compliance gap given that OPs are mandatory under both PPAs and generation licences. The Authority also highlighted that CPPA-G admitted to pending OPs in at least 17 cases despite agreement on Technical Limits.
Nepra rejected CPPA-G’s justification that no dispute notices had been initiated under the PPA, noting that the absence of formal dispute proceedings does not absolve the Licensee from proactively resolving issues. The Authority also pointed out that delays in settling Technical Limits for certain coal plants — Thar Coal Block-I, Thar Energy Limited, and ThalNova Power—were being wrongly attributed to Nepra, even though the underlying disputes fall under PPA jurisdiction and should have been resolved between CPPA-G, NTDC, and plant operators.
Copyright Business Recorder, 2025
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