Kot Addu Power Company Limited (KAPCO) has resumed electricity generation and reconnected to the national grid after remaining offline for more than ten weeks. The plant had halted operations on October 1, 2025, due to tariff restrictions under the earlier Indicative Generation Capacity Expansion Plan (IGCEP) and Power Acquisition Program (PAP).
NEPRA’s latest determination, issued on December 9, provisionally extends KAPCO’s tariff period, enabling the immediate restoration of its 495 MW gas/RLNG and 478 MW Low Sulphur Fuel Oil (LSFO) units.

NEPRA Decision Highlights Need for KAPCO in Grid Stability

The regulatory ruling follows detailed submissions from ISMO, NGC, MEPCO, CPPA-G and the Ministry of Energy. All organizations warned that KAPCO’s suspension was straining system stability, adding congestion at the Multan and Muzaffargarh grid stations, and risking reliable supply to 13 MEPCO-connected grids. NEPRA acknowledged that KAPCO remains vital due to ongoing transmission constraints and noted its inclusion in the draft IGCEP 2025–35 for this very reason.

Tariff Clarifications Approved

In its decision, NEPRA also addressed multiple tariff clarifications sought by KAPCO, including corrections to variable O&M components and the revised treatment of LSFO inventory costs. The Authority upheld its earlier approach on switchyard charges and the established methodology for calculating working capital cost. With the required clarifications now incorporated, the company is permitted to continue operations under the approved tariff terms until the IGCEP is finalized or for up to three years under the Tripartite Power Purchase Agreement.

Technical Error in O&M Components Corrected

A typographical error in the Variable Operation and Maintenance components of the original tariff decision has now been corrected. The revised table accurately reflects block-wise variable O&M charges instead of fuel-wise differentiation, aligning the determination with KAPCO’s original request.

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