ISLAMABAD: The Kot Addu Power Company (KAPCO) has approached the National Electric Power Regulatory Authority (NEPRA) for the approval of pending determinations as soon as possible, after receiving confirmation from the government about KAPCO’s inclusion in the National Grid for grid stability and to meet electricity requirements due to reduced generation from hydel sources, well-informed sources told Newzshewz.
The government has recently approved the draft Tripartite Power Purchase Agreement (PPA) and authorized the National Transmission and Dispatch Company (NTDC) to procure/acquire the switchyard on a permanent basis from KAPCO to meet the requirements of the MEPCO region. Accordingly, KAPCO may proceed with the matter after fulfilling its legal and regulatory requirements.
Following the approval of the draft Tripartite PPA by the Federal Cabinet, the Chief Executive Officer (CEO) of KAPCO, Shahab Qader Khan, wrote a letter to the Registrar of NEPRA, Waseem Anwar Bhinder, stating that the Power Division has informed the company that the Federal Cabinet has approved the draft agreement and directed the company to proceed after fulfilling the legal and regulatory requirements.
According to Mr. Khan, KAPCO has already submitted an addendum to the tariff petition, aligning it with the draft PPA approved by the Cabinet and the agreed terms with the Task Force on Implementing Structural Reforms in the Power Sector.
He claimed that NTDC has indicated a requirement of 500 MW from KAPCO to ensure system stability and meet local area network requirements. However, the following determinations remain pending with NEPRA: (i) concurrence or grant of the Generation License based on KAPCO’s application dated June 14, 2024; (ii) amendment to the EPPR, 2022, to enable CPPA-G to enter into the PPA; and (iii) determination of tariff as per the addendum to the tariff petition.
The CEO of KAPCO has requested NEPRA to expedite these determinations, as they are critical for the execution of the PPA and the timely operationalization of the plant before the summer season to meet NTDC’s grid system requirements.
Recently, the company informed the Pakistan Stock Exchange that the power regulator has approved the inclusion of its power plant in the Power Acquisition Plan (2023-27). Ends
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