Lahore: Kot Addu Power Company Limited (KAPCO) has secured provisional tariff approval from the National Electric Power Regulatory Authority (NEPRA) for its 500 MW Block I and Block II power plant, as per documentation filed under Section 96 of the Securities Act, 2015. The provisional tariff was granted following a tariff determination dated April 9, 2025, with a pending application for final tariff determination.
The power plant’s operation is contingent upon the completion of regulatory and corporate approvals. According to the company, this provisional tariff is structured under NEPRA Tariff (Standards and Procedure) Rules, 1998, with specific terms and conditions outlined in Annex A of the determination document.
The provisional tariff includes detailed components for both Gas/RLNG and LSFO fuel types. For Block I, the energy purchase price components are set at Rs. 28.0460 per kWh for Gas/RLNG and Rs. 29.5862 per kWh for LSFO. Meanwhile, Block II's energy purchase price components are Rs. 30.5956 per kWh for Gas/RLNG and Rs. 32.0417 per kWh for LSFO. The total tariff for Block I is Rs. 30.3010 per kWh for Gas/RLNG and Rs. 31.8915 per kWh for LSFO, while Block II’s total tariff stands at Rs. 32.9806 per kWh for Gas/RLNG and Rs. 34.4770 per kWh for LSFO.
According to information available from the Pakistan Stock Exchange (PSX), the provisional tariff conditions allow KAPCO to receive a 25% return on equity (ROE) on a Take or Pay basis, with any remaining ROE linked to actual dispatch exceeding 25%. These conditions also specify that the fuel cost components are based on an LSFO price of Rs. 150,817.50 per ton including transportation, and a Gas/RLNG price of Rs. 3,442.78 per MMBTU, with adjustments for fuel price variations.
The revised provisional tariff is effective immediately upon issuance of the decision and supersedes the previous provisional tariff approved on August 4, 2023. The dispatch will follow an economic merit order, ensuring efficiency in operations.
KAPCO has affirmed its commitment to updating the stock exchange of any material progress related to the tariff and operations of the power plant. The company’s latest move is seen as a significant step in the energy sector, reflecting its plans for expansion and adherence to regulatory frameworks.