System collapse: Nepra imposes Rs50m fine on NTDC

07 May, 2022

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs 50 million on National Transmission & Despatch Company (NTDC) on account of its inability to restore power supply in a timely manner in the wake of total power system collapse that occurred on January 09, 2021 and took 20 hours (approximately) to restore the system.

Earlier, Nepra took serious notice of the incident and constituted an Inquiry Committee (IC) to thoroughly investigate the matter in the light of NEPRA Laws, Rules and Regulations. The Committee conducted the inquiry and presented a detailed report to the Authority, on the basis of which the Authority initiated legal proceedings against NTDC.

Accordingly, an Explanation dated 01.04.2021 was issued to NTDC under Rule 4(1) of the Nepra (Fines) Rules 2002, followed by a Show Cause Notice on August 5, 2021 under Section 27B of the Nepra Act.

Moreover, an opportunity of hearing was also granted to NTDC on January 12, 2022, however, NTDC failed to provide any satisfactory response and was found guilty of violating relevant provisions of the Grid Code.

The Authority went through the documentary evidence and response submitted by the NTDC and has decided to

impose a fine of Rs 50 million on the entity for its failure to restore power supply on time on January 9, 2021.

The Authority has also initiated legal proceedings against concerned power plants for their lapses, deficiencies and failure in the breakdown.

However, the proceedings are under process and being dealt with separately.

Copyright Business Recorder, 2022

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