Lahore: Kot Addu Power Company Limited has announced the approval of its final generation tariff by the National Electric Power Regulatory Authority (NEPRA) for its Energy Block I and Block II, covering a capacity of 495 MW for gas/RLNG and 478 MW for LSFO. The approval, disclosed on September 26, 2025, follows an Addendum to the Tariff Petition submitted on February 12, 2025.
The regulator granted this approval through a determination dated September 23, 2025, which will replace the interim tariff issued on April 9, 2025. The company must now obtain internal corporate approvals and adjust all payments in accordance with the new terms. According to information available from the Pakistan Stock Exchange (PSX), Kot Addu Power Company Limited is set to disseminate this information among the exchange members.
The tariff components approved by NEPRA include the Energy Purchase Price and Capacity Purchase Price. For Energy Block I, the fuel cost component for Gas/RLNG is set at Rs. 28.0173 per kWh and Rs. 29.3071 per kWh for LSFO. Block II rates are Rs. 30.5644 per kWh for Gas/RLNG and Rs. 31.7398 per kWh for LSFO. The Capacity Purchase Price, which includes Fixed O&M, Cost of Working Capital, and Return on Equity (ROE), among others, has been structured to reflect the operational and financial adjustments as specified by NEPRA.
The new tariff framework allows for indexations and adjustments related to fuel cost variations, operational and maintenance costs, working capital, and insurance. The ROE component stipulates that Kot Addu Power Company Limited will receive 25% of ROE as a fixed payment based on availability, with additional entitlements based on actual NEO exceeding 25%.
The tariff will be valid until September 2025, with a possible extension subject to the approved Indicative Generation Capacity Expansion Plan (IGCEP) and Power Acquisition Plan (PAP). The maximum term of the tariff is set at three years, in accordance with the Tripartite Power Purchase Agreement signed in June 2025 with the Central Power Purchasing Agency (Guarantee) Limited and the National Grid Company of Pakistan Limited.