Tag: KAPCO

Nepra Questions Revival of Idle Kot Addu Plant Amid Surplus Power, Issues Notices to NTDC, Mepco

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New-KAPCO

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday raised serious concerns over efforts to revive the long-idle Kot Addu power plant, questioning its necessity given Pakistan’s existing surplus power generation capacity. During a public hearing on a three-year tariff petition filed by Kot Addu Power Company (Kapco), Nepra grilled stakeholders on why no alternative solutions were developed during the plant’s inactivity and whether the transmission system could have been upgraded instead to address grid challenges. “Mepco has already submitted in writing that it does not require power from…

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Kapco Seeks Higher Tariff, Take-or-Pay Model for Equity Returns

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New-KAPCO

ISLAMABAD:* Kot Addu Power Company Ltd (Kapco) has petitioned the National Electric Power Regulatory Authority (Nepra) for a tariff hike of up to Rs34.47 per unit and a guaranteed return on equity (RoE) under a take-or-pay model. Key Tariff Adjustments Sought: Proposed Equity Return Model: Kapco seeks an RoE *based on an 84.4% load factor, ensuring payments for up to **25% availability, with additional payments tied to **actual power generation. The petition estimates a *net dependable capacity of *495MW (RLNG) and 478MW (LSFO), with *efficiency rates of 46.44% and 45.54%,…

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KAPCO Welcomes Shahab Qader as New CEO

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Shahab-Qader

Lahore, December 30, 2024: The Board of Directors of Kot Addu Power Company Limited (KAPCO) has announced the appointment of Mr. Shahab Qader Khan as the Chief Executive Officer (CEO) for a term of three years. His tenure will officially commence on January 22, 2025, and conclude on January 21, 2028. This decision underscores the company’s commitment to fostering strong leadership to drive strategic growth and operational excellence. Mr. Shahab Qader Khan brings a wealth of experience and expertise to the role, ensuring the company remains at the forefront of…

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CPPA-G Seeks Settlement of Rs151bn ‘Irregular’ Payment to KAPCO Audit Para Dispute Arises Over Extended Power Purchase Agreement

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KAPCO-Audit

ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has requested the Auditor General to settle an audit para concerning an “irregular payment” of Rs151 billion made to Kot Addu Power Company (KAPCO) due to an unauthorized extension of its Power Purchase Agreement (PPA) without approval from the National Electric Power Regulatory Authority (NEPRA). KAPCO, privatized in 1996, had its original PPA signed on June 27 of the same year, with a 25-year term. However, disputes over liquidated damages (LDs) and delayed payments led to a complex situation, ultimately resolved through negotiations…

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KAPCO Denies Receiving Capacity Charges Post-PPA Expiry

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KAPCO-Denies

KARACHI: Kot Addu Power Company Limited (KAPCO) announced on Wednesday that it has not received any “capacity payments” from the government since its power purchase agreement (PPA) expired in October 2022. Addressing recent reports, KAPCO clarified that it has not been paid for generating electricity in the past 22 months. The company has only received overdue receivables related to the period up to the end of the PPA on October 24, 2022, which have been duly reported in its financial statements. Following the expiration of the PPA, KAPCO’s power plant…

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