The National Electric Power Regulatory Authority (Nepra) has ordered Karachi-based distribution company K-Electric (KE) to pay a fine of Rs25 million within 15 days over its failure to fulfil its responsibilities.

A Nepra notification available with Dawn.com stated that the penalty was issued over a nationwide power breakdown in January 2023.

Nepra noted that KE attempted to restore electricity amid a major power breakdown in January 2023 through ‘black start facilities’, which are used to restore power in the event of a blackout at KE plants, but attempts failed due to frequent tripping.

“Repeated failed attempts on the black start facilities of most of the power plants in the licensee’s (KE) fleet and their frequent tripping indicates the lack of mock testing of the black start facility by the licensee,” the notification read.

“The mock testing is a crucial step for the preparation of the licensee and all relevant stakeholders to handle a blackout scenario, as it ensures the healthiness of [the] black start facility.”

KE responded by attributing the power grid collapse to the National Transmission and Dispatch Company’s (NTDC) own power network.

“The authority (Nepra) has gone through the submissions of the licensee and observes that the licensee’s response attempts to justify the power breakdown on [January 23, 2023] by attributing the primary cause to disturbances in NTDC’s 500 kV network, which led to a cascading failure in its own system,” the notification read.

“While it is true that interconnected power systems are vulnerable to disruptions in the larger grid, the licensee’s argument that its stability is entirely dependent on NTDC’s network raises concerns about its own preparedness as a vertically integrated utility,” the authority stated.

Nepra observed that KE failed to perform its operations in accordance with Section 14B(4) of the Nepra Act, Rule 10(6) of the Nepra Licensing (Generation) Rules, 2000 and Clauses OC 8.1.1, 8.1.4, 8.2.1 8.2.2 and 8.2.3 of the Grid Code, imposing a Rs25m fine which would be payable within 15 days.

Failure to pay would lead Nepra to “recover the amount due under Section 41 of the Nepra Act, read with relevant provisions of the Fine Regulations, 2021, as arrears of the land revenue”.

Reacting to the development, the KE spokesperson in a statement termed the penalty “surprising”.

“K-Electric is currently reviewing the honourable authority’s detailed decision and will determine the future course of action accordingly,” the statement by the power utility added.