By SKM
December 10, 2025
ISLAMABAD: After more than ten weeks offline, Kot Addu Power Company Limited (KAPCO) is back on the national grid, bringing nearly 1,000 MW of critical generation online and easing pressure on southern Punjab’s electricity network. The restart follows a NEPRA ruling that resolved tariff issues which had sidelined the plant since October 1.
The shutdown stemmed from restrictions under the Indicative Generation Capacity Expansion Plan (IGCEP) and Power Acquisition Program (PAP). Grid operators and regulators had warned that KAPCO’s absence was straining system stability at Multan and Muzaffargarh, affecting reliable supply to 13 MEPCO grids and complicating congestion management.
NEPRA’s December 9 decision provisionally extends KAPCO’s tariff, allowing immediate operation of its 495 MW gas/RLNG and 478 MW LSFO blocks. The plant remains pivotal due to ongoing transmission constraints and is included in the draft IGCEP 2025–35, highlighting its strategic role as a Black Start–capable facility.
The ruling also corrected a typographical error in variable O&M charges, aligning them block-wise rather than fuel-wise, and clarified LSFO inventory costs, while maintaining switchyard and working capital charge methodologies. KAPCO can now operate under the approved tariff until the IGCEP is finalized, or for up to three years per the Tripartite Power Purchase Agreement.
With its return, KAPCO strengthens supply reliability, restores essential baseload capacity, and injects much-needed stability into Pakistan’s southern grid. Ends.
