KAPCO Seeks Nepra Clarity on Tariff for Grid Stability

ISLAMABAD: Kot Addu Power Company Limited (KAPCO) has urged the National Electric Power Regulatory Authority (Nepra) to provide clarity on its recent tariff order to ensure regulatory consistency and safeguard grid stability, according to Business Recorder, citing sources.

In a formal letter to the Nepra Chairman, KAPCO CEO Shahab Qader Khan sought explicit confirmation that the tariff for its 495MW Combined Cycle Power Plant (CCPP) remains valid for the entire three-year term of the Tripartite Power Purchase Agreement (TPPA). He cautioned that without a clear tariff framework, KAPCO would lack the legal or financial basis to operate, potentially jeopardizing the MEPCO region and the national transmission system.

Nepra’s order issued on September 23, 2025, stipulated that the tariff applies “till September 2025, subject to extension based on the approved IGCEP/PAP,” with a maximum duration of three years. KAPCO contends this relies on outdated IGCEP 2022–31 projections and fails to account for current system demands or Nepra’s later findings.

KAPCO highlighted that the Power Acquisition Plan (PAP 2022–27) and the draft Transmission System Expansion Plan (TSEP 2025) confirm the ongoing need for KAPCO’s 500MW capacity beyond FY2025–26, due to incomplete transmission upgrades at Vehari and Nagshah. The PAP noted that KAPCO’s generation “will be required till FY2025–26,” pending grid infrastructure completion, while the TSEP underscored delays in these projects, making KAPCO’s role critical for “secure system operation.”

Nepra’s own generation licence extension referenced NTDC’s submission that 500MW from KAPCO will remain essential until at least June 2027, particularly during peak summer months to meet regional demand.

KAPCO has requested Nepra to affirm that its 495MW tariff will either remain valid until September 2028, covering the full TPPA term, or continue until the Vehari and Nagshah substations are completed, whichever occurs first.