Nepra issues show-cause notices to three IPPs

The National Electric Power Regularity Authority (Nepra) has issued show-cause notices to three independent power producers (IPPs) for failure to restore the power supply to the national grid station after a countrywide breakdown in January last year.

The development came after the matter was raised in the National Assembly, and oppositions and some of the government’s allies demanded a probe into the IPPs’ contract. However, the investigation was initiated in 2023. 

Following the detailed investigation, it was revealed that the three projects — 1320MW Sahiwal Coal Power Project (operated by Huaneng Shandong Ruyi of China), 450MW Rousch Power Plant in Khanewal, and 134MW Saba Power Project could not run the national grid station by providing their generating units.

The Nepra has initiated legal proceedings against all three sponsors of the projects, allowing them to file an explanation with all documentation and evidence.

The matter came to light after Jan 23, 2023, when the nationwide breakdown was witnessed in the morning and took 20 hours to fully restored, subsequently, the regulators formed an inquiry committee to investigate the reason behind the failure.

The committee deeply investigated the matter, visited powerhouses, grid stations and sites and checked their documents to determine the causes of the breakdown.

The findings unveiled the IPPs failed to comply with NPCC’s instructions in a timely manner, which caused a delay in the restoration process of the power system.

The management of the Sahiwal plant said that the start-up process during the accident or blackout differs from the normal situation. The company said, in their response, that it takes additional time to normalise various plant components after a blackout.

The IPPs are given time to defend their cases in writing with evidence and have the right to a personal hearing before the regulator.