NTDC Fined Rs. 50 Million Over Failure to Timely Restore System During Last Year’s Power Breakdown

The National Electric Power Regulatory Authority (NEPRA) has fined the National Transmission & Despatch Company (NTDC) Rs. 50 million on account of its inability to restore the supply of power in a timely manner in the wake of a total power system collapse on 9 January 2021. NTDC had taken approximately 20 hours to restore the entire system. Previously, NEPRA had taken serious notice of this incident and constituted an Inquiry Committee to investigate the matter thoroughly in light of the NEPRA Laws, Rules and Regulations. The committee had conducted the inquiry and presented a detailed report to NEPRA on the basis of which the latter had initiated legal proceedings against the NTDC. An ‘explanation’ was issued to NTDC last year under Rule 4(1) of the NEPRA (Fines) Rules 2002, followed by a Show Cause Notice in August 2021 under Section 27B of the NEPRA Act. Moreover, an opportunity for a hearing was also granted to the NTDC this January. However, the NTDC had not provided a satisfactory response and was found guilty of violating the relevant provisions of the Grid Code. Therefore, NEPRA has fined the NTDC Rs. 50 million. NEPRA has also started legal proceedings against the concerned power plants for their lapses, deficiencies, and failures in the aforementioned breakdown.