NEPRA authorizes provisional tariff for KAPCO’s 500 MW project

MG News | April 10, 2025 at 10:17 AM GMT+05:00

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April 10, 2025 (MLN): The National Electric Power Regulatory Authority (NEPRA) has approved a Provisional Tariff for Kot Addu Power Company Limited (PSX: KAPCO) for 500 MW (Block I and Block II) under Rule 4(7) of NEPRA Tariff (Standards and Procedure) Rules, 1998.

The application for Final Tariff Determination is still pending, the company's filing on PSX revealed today.

The approval was granted through NEPRA's tariff determination dated April 9, 2025, following the company's submission of an Addendum to the Tariff Petition dated February 12, 2025.

Components	Block	Gas/RLNG (Rs./kWh)	LSFO (Rs./kWh)
Energy Purchase Price
Fuel Cost components	I	28.0460	29.5862
	II	30.5956	32.0417
V O&M	I	0.8692
	II	0.9992
Capacity Purchase Price
Fixed O&M	I, II	0.6774	0.7015
Cost of Working Capital	I, II	0.1545	0.1600
ROE	I, II	0.3388	0.3519
Insurance		0.2151	0.2227
Total Tariff	I	30.3010	31.8915
	II	32.9806	34.4770

The conditions for the application of the Provisional Tariff for KAPCO include several key points.

As requested in the Addendum, KAPCO will be entitled to receive a 25% Return on Equity (ROE) on a Take or Pay basis, with the remaining ROE linked to actual dispatch exceeding 25%.

The fuel cost components have been calculated based on an LSFO Price of Rs150,817.50 per ton, including transportation charges, and a Gas/RLNG Price of Rs3,442.78 per MMBTU.

These fuel cost components will be subject to adjustments for any variations in fuel prices.

The dispatch will be based on the economic merit order, and the revised provisional tariff will supersede the previously approved provisional tariff dated August 4, 2023.

The new provisional tariff will take effect from the date of issuance of this decision.

The operations of the power plant will commence following completion of regulatory and corporate approvals.

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