The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on April 8, 2025, to review Kot Addu Power Company’s (Kapco) revised tariff petition. The power company is seeking regulatory approvals crucial for its continued operation and inclusion in the national grid.
Kapco’s CEO, Shahab Qader Khan, previously wrote to the Power Division on March 13, 2025, referencing the division’s earlier letter on February 14 regarding Kapco’s role in the national grid. In his letter, he highlighted two key pending matters with Nepra: approval of Kapco’s generation license (applied for in June 2024) and determination of its tariff based on a revised petition submitted on February 12, 2025.
These approvals are necessary for Kapco to finalise its Power Purchase Agreement (PPA) with the Central Power Purchasing Agency (CPPA-G). The company has urged Nepra to expedite these decisions to ensure its plant becomes operational in time to meet electricity demand during the summer season.
Following Kapco’s request, Nepra published an advertisement on March 14, 2025, announcing the issues to be discussed at the hearing. The revised tariff petition includes proposed payments for power generation under different scenarios, including blackout operations. Kapco has requested an increase in fuel cost compensation and proposed a reference tariff of Rs30.30–34.47 per unit, depending on fuel type and plant block.
The petition also details technical assumptions, including expected electricity generation capacity, fuel pricing benchmarks, efficiency rates, and cost adjustments. Kapco is requesting tariff indexation based on fuel prices, inflation, and interest rates, as well as reimbursement for various operational expenses such as corporate taxes and maintenance costs.
Nepra’s decision on the petition will determine whether Kapco secures the necessary approvals to continue supplying electricity under the new tariff structure.
