Nepra Slaps Rs. 25 Million Fine on National Grid Company and CPPA

The National Electric Power Regulatory Authority (Nepra) has imposed fines of Rs. 25 million each on the National Grid Company and the Central Power Purchasing Agency (CPPA) for repeatedly failing to comply with key safety and legal requirements designed to protect Pakistan’s power system and ensure swift recovery after blackouts. In separate but similar orders, Nepra cited both entities for violations under Section 48 of the NEPRA Act, specifically for not finalizing mandatory operating procedures with dozens of power plants and for inadequate planning to restart the grid following system failures. The fines must be paid within 15 days, or they will be recovered as land revenue, officials said. Nepra’s investigation found that more than one-third of the required operating procedures with power plants remain unsigned, years after their deadlines. The regulator dismissed attempts by the companies to shift blame onto power producers, pointing out that dispute-resolution mechanisms are already in place under existing power purchase agreements. The authority also linked the weak “black start” framework, the system used to restore electricity after a nationwide blackout, to delays in restoring power during major outages in 2021, 2022, and 2023. Several power plants failed to synchronize on time due to missing or unclear blackout-specific procedures. Nepra criticized both companies for only conducting mandatory black start tests after legal proceedings had begun, describing the behavior as evasive and detrimental to grid security. The regulator also clarified that black start services are already covered under current contracts and do not warrant additional payments.