ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is scheduled to hear the revised tariff petition of Kot Addu Power Company (Kapco) on April 8, 2025.
On March 13, 2025, in a letter to the Power Division, Kapco’s CEO, Shahab Qader Khan referred to the Power Division’s letter of February 14, 2025 regarding Kapco’s inclusion in the national grid.
In this context, the CEO highlighted the following pending actions with Nepra: (i) concurrence or issuance of the Generation License based on Kapco’s application submitted on June 14, 2024; and (ii) determination of the tariff as per the Addendum to the tariff petition dated February 12, 2025.
The CEO emphasized that these regulatory approvals are critical for entering into a Power Purchase Agreement (PPA) with CPPA-G. He added that Kapco has been actively urging the Nepra to expedite these determinations, as they are essential for executing the PPA and ensuring the timely operationalisation of the plant before the summer season to meet NTDC’s grid system requirements.
KAPCO’s power plant to remain in system till 2027
Following Kapco’s letter, the Nepra published an advertisement in the newspapers on March 14, 2025, outlining the issues to be discussed during the public hearing. Through the addendum, the power company has submitted revised terms to the tariff petition under the Nepra Act.
For open cycle, simple cycle operation, particularly for Blackout operations as per dispatch instructions from the National Power Control Centre (NPCC), a payment of 1.5 times the Fuel Cost Component (FCC) will be made.
In case of open cycle, simple cycle operations as per dispatch instructions of National Power Control Centre (NPCC) particularly for Blackout operations, 1.5 times of Fuel Cost Component (FCC) will be paid.
The petitioner has proposed the following tariff for its generation facilities: total proposed reference tariff of Block-1 on Gas/RLMNG will be Rs 30.3010 per unit and Block-II, Rs 32.9806 per unit.
The power company has proposed Rs 31.8915 per unit reference tariff for Block-I on LSFO and Rs 34.4770 per unit for Block-II on LSFO.
According to revised tariff petition, RoE is @ 84.4 percent load factor requested to be paid on take or pay basis till 25 percent of availability and for any generation above this limit, to be based on actual generation.
The petitioner submitted that net dependable capacity assumed for combined cycle operation on RLNG and LSFO of Block-1 net capacity on gas/RLNG will be 347 MW and on LSFO 334 MW whereas on Block-II net capacity will be 148 on gas/ RLNG and 144 MW on LSFO. This implies that total net capacity of both Blocks will be 496 MW on Gas/ RLNG and 478 MW on LSFO.
The petitioner requested the actual heat rates of the generation facility/ benchmark efficiency at Block-1, 46.44 percent on Gas/ RLNG and 45.54 percent on LSFO while efficiency of Block-II on gas/ RLNG is supposed to be 42.57 percent and 42.05 percent on 42.05 percent.
The petitioner has requested indexation/ adjustment of tariff on fuel price, CPI or 5 percent whichever is lower, KIBOR and insurance as per actual capped at 0.9 percent of the EPC cost.
The power company has also requested reimbursement of pass-through item i.e. FFW, WPPF, Black Start facility and corporate taxes etc. within a month of actual payment/invoice date. The petitioner has also requested adjustment on account of star-ups cost, part load etc.
The tariff is based on the following assumptions: HVV RLNG/ gas price of $ 12.3695/MMBTU and LSFO price at Rs 150,817.50 per ton including transportation cost.
Copyright Business Recorder, 2025
Comments