NewzShewz
No Result
View All Result
Wednesday, June 10, 2026
  • Home
  • Finance
  • Politics
  • Energy
  • International
NewzShewz
  • Home
  • Finance
  • Politics
  • Energy
  • International
No Result
View All Result
NewzShewz
No Result
View All Result
Home Energy

NEPRA closes Show Cause notice against LPCL

by NewzShewz Desk
June 10, 2026
in Energy
0
NEPRA okays new financing mechanism for 59 IPPs of different technologies
1
VIEWS
Share on FacebookShare on Twitter


ISLAMABAD: The National Electric Power Regulatory Authority (MNEPRA) has closed Show Cause notice against Lalpir Power Company Limited (LPCL) on account of failing to restart the plant after total collapse of power system in 2023.
According to the details, the total power system collapse occurred on January 23, 2023 at 07:34:43:800 Hrs which plunged the whole country into darkness and the system was completely restored on 24.01.2023 after 20 hours approximately. NEPRA, being a regulator of power sector, took cognizance of the incident and constituted an Inquiry Committee (IC) to probe into the matter. During the course of inquiry, the IC visited power houses, grid stations, sites, offices and obtained relevant documents 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 on January 23, 2023 was provided by System Operator (NPCC). The submitted information revealed that the supply at Licensee’s bus bar was restored at 00:03 Hrs on January 24, 2023 and the Licensee was instructed by NPCC through Notice to Synch (NTS) as per PPA to synch its complex at 07:13 Hrs on January 24, 2023. However, the Licensee had synchronized its complex at 11:22 Hrs on January 24, 2023 i.e. after a lapse of 04:09 Hrs, thereby, prima facie, the Licensee failed to comply with the NPCC’s instructions in a timely manner as per terms & conditions of PPA which severely hampered the restoration process of power system.
In view of the above, the Authority observed that the Licensee was bound to follow the instructions of the NPCC, which it failed to do. 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 Clauses OC 8.1.1, 8.1.4, 8.2.1, 8.2.2 & 8.2.3 of the Grid Code. In view of the foregoing, the Authority decided to initiate legal proceedings against the Licensee under NEPRA (Fine) Regulations, 2021 (hereinafter referred to as the ‘Tine 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 vide letter of October 09, 2023. The Authority, after detailed deliberations, rejected the response submitted by the Licensee to the above Explanation vide Order dated December 05, 2024, recording reasons for such rejection.
The Show Cause Notice (SCN) and Explanation are issued without jurisdiction, misplaced, and contrary to applicable law. The Company’s obligations to meet the Power Purchaser’s dispatch instructions and notice to synchronize are exclusively governed by the Company’s Power Purchase Agreement (“PPA”), which provides a self-contained framework for operational issues, including remedies for any delay or failure. Regulation 4(1) of the NEPRA (Fines) Regulations, 2021, applies only to violations of the NEPRA Act, 1997, and applicable documents (license, rules, regulations, and Grid Code), not the PPA. No provision of the Act, Rules, or Grid Code has been cited that imposes obligations independent ofthe PPA in this instance.
The Power Purchaser has already penalized the Company for the alleged delayed synchronization, which is consistent with the PPA. Any additional penalty by NEPRA would constitute double punishment, contrary to law, principles of natural justice, and constitutional rights.
The delay in synchronization on January 24, 2023, resulted from an extended shutdown of nearly 100 days without dispatch from the Power Purchaser. The Company followed all required safety protocols, including preserving the Complex with higher chemical concentrations and flushing them prior to start-up consistent with prudent utility practices under the PPA, OEM recommendations and Section 1.4B of the Act. Both the Power Purchaser and NPCC have confirmed that the Company acted appropriately and that any delay was treated as a forced outage.
The Authority has not provided the Company with the comments from the Power Purchaser and System Operator as mentioned in the Order enclosed with the SCN. This omission constitutes a breach of due process, fairness, and natural justice under Regulation 4(8) of the Fines Regulations and Section 24A of the General Clauses Act, 1897. Additionally, it is noted that the Authority, while passing the Order enclosed under the SCN and issuing the SCN, has not provided the Company with an opportunity of being heard.
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 decides to accept the response submitted by the Licensee to the Show Cause Notice issued to it and order to close die matter in terms of Regulation 4(12) of the Fine Regulations, 2021.

Related Posts

Wake up CEO MEPCO
Energy

NEPRA refuses any relief to MEPCO in Review Motion

by NewzShewz Desk
June 9, 2026
0

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has rejected Review Motion filed by Multan Electric Power Company (MEPCO) against...

Read more
NEPRA okays new financing mechanism for 59 IPPs of different technologies
Energy

NEPRA issues complete QTA decision

by NewzShewz Desk
June 8, 2026
0

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued complete decision about QTA negative adjustment of Rs 1.9857/ kWh...

Read more
  • Trending
  • Comments
  • Latest
Dasu Transmission Line Controversy Continues

OSD DMD refutes incompetence label , highlights NTDC leadership flaws, WB project issues, corruption, and contractor influence”

June 12, 2025
Investigations into IPPs Undermine Investor Confidence

KE Board…. thank you. We are leaving the meeting

November 13, 2025
Newzshewz Exclusive

NTDC BoD removes ” incompetent ” officials

April 23, 2025
Zargham Eshaq Khan steps down as MD NESPAK

Zargham Eshaq Khan steps down as MD NESPAK

November 1, 2025
Enhanced Rationalization in the Categorization of SOEs

Enhanced Rationalization in the Categorization of SOEs

0
PPIB to extend TLoS of ZSPL

PPIB to extend TLoS of ZSPL

0
CCP Fines Diamond Paint Industries PKR 5 million

CCP Fines Diamond Paint Industries PKR 5 million

0
Steering Committee on Discos

Steering Committee on Discos

0
NEPRA okays new financing mechanism for 59 IPPs of different technologies

NEPRA closes Show Cause notice against LPCL

June 10, 2026
Wake up CEO MEPCO

NEPRA refuses any relief to MEPCO in Review Motion

June 9, 2026
NEPRA okays new financing mechanism for 59 IPPs of different technologies

NEPRA issues complete QTA decision

June 8, 2026
NEPRA okays new financing mechanism for 59 IPPs of different technologies

NEPRA approves Paisa 80/kWh net relief for power consumers of Discos and KE

June 4, 2026
  • Home
  • About
  • Contact Us
  • Privacy Policy
  • Cookie Policy
  • Terms and Conditions
Contact us: contact@newzshewz.com

No Result
View All Result
  • Home
  • Finance
  • Energy
  • International
  • Politics
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.