NEPRA accepts Sahiwal Power Plant’s explanation, closes blackout inquiry

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has settled Show Cause notice issued to 1320 MW Sahiwal coal-fired power plant of Huaneng Shandong Ruyi Energy with respect to power breakdown in two years ago.
The power system breakdown occurred on January 23, 2023 which plunged the whole country into darkness and the system was completely restored on January 24, 2023 after 20 hours approximately. NEPRA, being a regulator of power sector, took serious notice of the incident and constituted an Inquiry Committee (IC) to probe into the matter. The IC visited power houses, grid stations, sites and offices in the process of inquiry. During the course of inquiry, the matter was examined in detail by inquiring the concerned officials and in the process, relevant documents were also obtained to arrive at the right conclusion.
The information related to supply restoration time of power plants and synchronization of their units after complete system breakdown of January 23, 2023 was provided by System Operator (NPCC). The submitted information revealed that the supply at Licensee’s bus bar was restored at 22:21 Hrs on January 23, .2023 and the Licensee was instructed by the NPCC through Notice to Synch (NTS) as per PPA to synch its Units 1 & 2 at 06:24 Hrs on January 24, 2023. However, the Licensee had synchronized its units at 07:35 Hrs and 20:25 Hrs on January 24, 2023 respectively i.e. after a lapse of 01:11 Hrs and 14:01 Hrs respectively, thereby, prima facie, the Licensee failed to comply with the NPCC’s instructions in a timely manner as per terms and conditions of PPA which severely hampered the restoration process of power system.
The Authority observed that the Licensee was bound to follow the instructions of the NPCC, which it failed to do so. Hence, the Authority observed that the Licensee has, prima facie, failed to comply with Section 14B (4) of the NEPRA Act, Rule 10(6) of the NEPRA Licensing (Generation) Rules, 2000 and Grid Code. In view of the foregoing, the Authority decided to initiate legal proceedings against the Licensee under NEPRA (Fine) Regulations, 2021.
Accordingly, an explanation of September 22, 2023 was issued to the Licensee under Regulation 4(1) & 4(2) of the Fine Regulations, 2021.
In response, the Licensee submitted its reply in its letter of October 04, 2023. The Authority after detailed deliberations rejected the response submitted by the Licensee against the Explanation giving reasons for such rejection through Order of September 13, 2024.
Accordingly, a Show Cause Notice September 13, 2024 was issued to the Licensee under Regulation 4(8) & 4(9) of the Fine Regulations, 2021, based on violations alleged in the Explanation.
In response, the Licensee submitted its reply on September 23, 2024. The salient features of the response submitted by the Licensee are as follows: (i) the power company was the first to reconnect to the grid after the January 23, 2023 blackout, taking 1 hour and 11 minutes longer due to black start conditions, whereas Saba Power and Rousch Power took 3 hours and 35 hours, respectively ;(ii) NPCC has requested NEPRA to increase black start time by 4 hours, confirming the Company’s compliance with regulations, while Schedule 5 of our PPA stipulates a normal warm start time of 480 minutes, not applicable in blackout scenarios;(iii) equipment damage occurred due to the blackout, including issues with valves, oil tanks, condenser membranes, and the DCS system; despite this, the Company made every effort to reconnect, and it thought NTDC should compensate it rather than NEPRA imposing fines;(iv) OP negotiations are stalled due to CPPA-G and NPCC rejecting the Company’s approach to unit startup, despite its plant’s technical limitations; (v) the power company has suggested NEPRA investigate its startup boiler capacity ;(vi) the Company reached a consensus with CPPA-G and NPCC in the third week of this month regarding OP signing, but CPPA-G has yet to arrange the final signing; and (vii) additionally, CPPA-G has already imposed a forced outage penalty on us for the delayed start-up. Now NEPRA is considering further penalties, which we believe to be unjust and unreasonable.
The Authority considered the response submitted by the Licensee and decided to provide an opportunity of hearing to the Licensee under Regulation 4(11) of the Fine Regulations, 2021. Accordingly, hearing in the matter was held on March 06, 2025 at the NEPRA Head Office, Islamabad, wherein, the representatives of the Licensee participated and made their submissions.
The Authority has gone through the submissions of the Licensee, and observes that the Licensee has provided satisfactory reply to the Show Cause Notice issued to it.
In view of the above, the Authority has decided to accept the response submitted by the Licensee to the Show Cause Notice issued to it and order to close the matter in terms of Regulation 4(12) of the Fine Regulations, 2021.