ISLAMABAD: Kot Addu Power Company Limited (KAPCO) has requested an immediate determination of the Switchyard tariff for its plant to finalize an agreement with the National Transmission and Dispatch Company (NTDC). This request was made by acting CEO Rabnawaz Anjum in a letter to the National Electric Power Regulatory Authority (NEPRA).
Anjum referenced NEPRA’s letter dated June 16, 2023, regarding the notice of admission for the tariff petition and the public hearing held on October 3, 2023. KAPCO submitted its tariff petition for approval of both Generation Tariff and Switchyard Tariff on October 24, 2022, but the finalization of this petition has been pending for nearly two years.
KAPCO’s Switchyard features a 220kV/132kV facility, which has remained operational at the request of NTDC and the Ministry of Energy (Power Division) since the expiration of its Power Purchase Agreement (PPA) on October 24, 2022. The Switchyard includes four auto-transformers (total capacity 500 MVA, 220/132 kV), along with six 220 kV feeders and six 132 kV feeders. Notably, two of the auto-transformers (T1 and T2, 2*100 MVA) were manufactured in 1965 and 1974 and are in urgent need of replacement to prevent catastrophic failure. However, replacement cannot proceed without a commercial tariff.
Since October 2022, KAPCO has been operating and maintaining the Switchyard at its own expense, anticipating a separate tariff from NEPRA to recover these costs. The issue has been repeatedly communicated to NEPRA and all stakeholders involved.
A high-level meeting took place at WAPDA House in Lahore on September 18, 2024, between KAPCO and NTDC to discuss the Switchyard operations and KAPCO’s provisional claim. During this meeting, NTDC reiterated the need for 500 MW of generation capacity until 2027, along with continued support from the Switchyard. NTDC has stated it can only enter into an agreement for Switchyard charges once NEPRA establishes the tariff.
In light of these circumstances, KAPCO has urged NEPRA to urgently review and award the Switchyard tariff. Additionally, KAPCO has requested a joint meeting with all stakeholders (NTDC, NPCC, MEPCO, KAPCO, and CPPA-G) to resolve this long-standing matter.
As a publicly listed entity with approximately 65,000 shareholders, KAPCO cannot continue providing the Switchyard facility without adequate compensation for operation and maintenance costs.
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