NEPRA Drops Saif Power Case Over Blackout Delays

NEPRA Closes Enforcement Case Against Saif Power Over Blackout-Related Delays

The National Electric Power Regulatory Authority (NEPRA) has concluded enforcement proceedings against Saif Power Limited over delays in synchronising its generating units after the nationwide power breakdown on January 23, 2023, deciding that the matter did not justify a regulatory penalty, Business Recorder reported.

The decision was made under the NEPRA (Fine) Regulations, 2021. The authority accepted the company's response to a show-cause notice issued on December 5, 2024, and closed the proceedings under Regulation 4(12).

The case originated from NEPRA's investigation into the nationwide blackout, which took approximately 20 hours to resolve.

According to the regulatory record, electricity supply to Saif Power's bus bar was restored at 10:35pm on January 23. The National Power Control Centre (NPCC) subsequently directed the company to synchronise its GT-1 unit at 11:26pm and its steam turbine generator (STG) at 12:50am on January 24.

However, GT-1 was synchronised at 1:30am, while the STG was synchronised at 1:08am. This resulted in delays of two hours and four minutes for GT-1 and 18 minutes for the STG, respectively.

NEPRA initially viewed these delays as potential violations of the NEPRA Act, Generation Licensing Rules, 2000, and relevant Grid Code provisions. It sought an explanation from the company on September 22, 2023, before issuing the formal show-cause notice on December 5, 2024.

Company's Defence

Saif Power maintained that synchronisation requirements were covered under its Power Purchase Agreement (PPA), which already prescribed penalties for delays. The company argued that the power purchaser had imposed a penalty and that further regulatory action would constitute double punishment.

It also questioned the timing of the proceedings and attributed the delays to automated startup procedures and operational safety requirements.

NEPRA's Final Decision

Following a hearing held on August 8, 2025, NEPRA determined that the existing contractual framework was sufficient to address such deviations. It further concluded that the available evidence did not support imposing an additional regulatory penalty.

The authority also referred to the principles of proportionality and consistency in dealing with similar cases linked to the same nationwide blackout before formally closing the proceedings.