Nepra slaps Rs25 million fine on K-Electric for 2023 power breakdown

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday imposed a Rs25 million fine on K-Electric (KE) over its operational failures during the nationwide power breakdown in January 2023.

Nepra directed K-Electric to deposit the fine within 15 days, following a detailed inquiry into KE’s failure to prevent or adequately respond to the power outage.

The regulator found KE responsible for deficiencies within its own power system, rejecting the company’s explanations as unsatisfactory and unacceptable.

According to Nepra, K-Electric failed to justify internal faults and operational errors and could not shift the entire blame onto the National Grid.

The authority also pointed to KE’s ineffective Black Start capability—a critical system designed to restore power generation independently of the national grid during a blackout. Despite prior drills, the Black Start system failed during the actual emergency, Nepra noted.

“Technical flaws in KE’s Black Start plants remained unresolved, and repeated trippings during the blackout exposed the ineffectiveness of existing safety mechanisms,” the regulator added.

Notably, on January 23, 2023, Pakistan experienced one of its worst nationwide blackouts, leaving millions without electricity for several hours. The outage affected nearly every part of the country—from Islamabad in the north to Karachi in the south—disrupting daily life, business operations, and essential services.

Earlier, K-Electric (KE), announced its financial results for the fiscal year ending June 30, 2024, reporting a profit after tax of PKR 4.13 billion despite significant economic challenges.

The company’s board in its meeting held on September 23, 2025, approved the financial results. The board stated that the country’s economy experienced subdued growth in FY24, with GDP growth of 2.51 percent. High inflation and elevated policy rates continued to challenge the country’s power sector, placing operational pressure on KE.