KAPCO secures provisional tariff extension

December 10, 2025 (MLN): Kot Addu Power Company Ltd (PSX: KAPCO) received a provisional extension of its tariff term and a revised tariff schedule following the National Electric Power Regulatory Authority (NEPRA) 's decision on December 9, 2025.

The move followed KAPCO's filing of a motion for review of NEPRA’s earlier determination dated September 23, 2025.

In its filing to the Pakistan Stock Exchange (PSX), KAPCO said NEPRA revised the tariff table, extended the tariff term provisionally, and set guidelines for fuel inventory valuation.

The provisional extension is tied to the Integrated Generation Capacity Expansion Plan (IGCEP).

Until the IGCEP is approved, KAPCO will receive capacity payments under the revised tariff.

Once included in the IGCEP, the tariff term will extend automatically either to the IGCEP-specified expiry date or for three years, whichever comes earlier, in line with the Tripartite Power Purchase Agreement.

NEPRA replaced the previous tariff table issued on September 26, 2025, distinguishing Gas/RLNG and Low Sulphur Furnace Oil (LSFO) operations across two energy blocks.

Key approved tariff components (Rs/kWh) include:

• Fuel Cost – Block I: Gas/RLNG 28.0173, LSFO 29.3071

• Fuel Cost – Block II: Gas/RLNG 30.5644, LSFO 31.7398

• Total Tariff – Block I: Gas/RLNG 30.0863, LSFO 31.4162

The revised tariff also covers Variable O&M, Fixed O&M, Working Capital, Insurance, and Return on Equity (ROE).

NEPRA ruled that LSFO stock procured under the expired PPA will be valued at the lower of the actual average price or prevailing market price.

KAPCO said it will now proceed to secure internal approvals before implementing the revised tariff and related provisions.

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