Nepra Imposes Rs25M Fine on KE

The National Electric Power Regulatory Authority (NEPRA), has imposed Rs25 million fine on K-Electric Limited (KE) over nationwide power breakdown of January 23, 2023.

 KE is alleged for a failure to perform system restoration duties and comply with grid operation standards following the nationwide power breakdown of January 23, 2023.

In an order issued on October 8, 2025, NEPRA has observed that K-Electric violated key provisions of the NEPRA Act, the Generation Licensing Rules, 2000, and clauses of the Grid Code that are related to power restoration and system reliability.Saudi Investor Signs Deal to Acquire Majority Stakes in KE

The power regulator has said that the company’s inability to maintain “adequate black start readiness” and conduct required mock tests had directly led to extend power outages across Karachi following the collapse of the national grid.

The 2023 breakdown began at 7:34 a.m. on January 23 which plunged the entire country into darkness and took nearly 20 hours to fully restore.

NEPRA’s inquiry found that K-Electric was synchronized with the National Transmission and Dispatch Company (NTDC) network. It was drawing 708 megawatts (MW) from the national grid while generating another 538 MW independently.

When NTDC’s connection tripped, K-Electric’s system had failed to sustain itself and caused cascading shutdowns across its generation fleet.

According to the authority’s findings, tripping at key power facilities included Bin Qasim Power Station (BQPS-III), Tapal, and the Site plants. They were all equipped with black start capability had lacked credible technical justification.

Despite multiple restart attempts, most black start units failed to sustain operations in isolation, severely delaying Karachi’s power restoration.

NEPRA has stated that the pattern of repeated tripping reflected inadequate mock drills and poor contingency preparedness to handle blackout scenarios.

The regulator further added that K-Electric had breached Section 14B(4) of the NEPRA Act, Rule 10(6) of the Generation Licensing Rules, and clauses OC 8.1.1, 8.1.4, 8.2.1, 8.2.2, and 8.2.3 of the Grid Code.

These provisions obligate power producers to maintain readiness for total or partial shutdowns. It also calls for ensuring timely power restoration, and coordinate with the national grid operator for safe system recovery.

K-Electric responded that the blackout were due to a disturbance in NTDC’s 500kV transmission network. It caused a cascading failure in its own system. The utility has further added that due to operating within an interconnected grid, power interruptions were inevitable following national grid disruptions.

KE said that it had happened during a low-demand winter period, when system inertia is limited. It amplifies the disturbance. K-Electric further contended NEPRA’s proceedings were “time-barred” under fine regulations.

K-Electric spokesperson has termed the penalty “surprising,”. It added that the January 2023 blackout “was caused by a disturbance in the NTDC system.” The spokesperson maintained that K-Electric was reviewing NEPRA’s detailed decision that would determine the future course of action accordingly.”