KAPCO urges Nepra to clarify tariff order to safeguard grid stability

Kot Addu Power Company Limited (KAPCO) has requested the National Electric Power Regulatory Authority (Nepra) to clarify its recent tariff order to ensure regulatory consistency and maintain grid stability, Business Recorder reported, citing sources.

In a formal communication to Nepra Chairman, KAPCO CEO Shahab Qader Khan called for explicit confirmation that the tariff for its 495MW Combined Cycle Power Plant (CCPP) remains valid for the full three-year period under the Tripartite Power Purchase Agreement (TPPA). 

He warned that without a clear tariff framework, KAPCO would have “no legal or financial basis” to operate its plant, potentially creating vulnerabilities in the MEPCO region and the national transmission system.

Nepra’s order issued on September 23, 2025, stated that the tariff would apply “till September 2025, subject to extension based on the approved IGCEP/PAP,” with a maximum term of three years. KAPCO argues that this relies on outdated IGCEP 2022–31 projections and does not reflect current system needs or Nepra’s own subsequent determinations.

According to KAPCO, the Power Acquisition Plan (PAP 2022–27) and the draft Transmission System Expansion Plan (TSEP 2025) confirm continued dependence on 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, after which it may not be required” pending grid infrastructure completion, while the TSEP stressed that these projects remain delayed, keeping KAPCO’s role essential for “secure system operation.”

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

KAPCO has requested Nepra to confirm that its 495MW tariff will either remain valid until September 2028 (covering the full TPPA term) or continue until the completion of the Vehari and Nagshah substations, whichever comes first.