Kapco seeks renewal of agreement with new tariff

Kot Addu Power Company Ltd (Kapco) said on Monday it has submitted a tariff petition to the National Electric Power Regulatory Authority (Nepra) for a reference generation tariff. The independent power producer (IPP) made the announcement as its original power purchase agreement (PPA) of 1996 completed its term on Oct 24. As a result, the operator of a multi-fuel–powered plant of 1,600 megawatts will not be able to sell electricity to the sole power purchaser under the original PPA. However, the IPP recently received its renewed power generation licence by Nepra for three years. Now the company and the Central Power Purchasing Agency (CPPA) have agreed to sign a new PPA for the sale and purchase of electricity, it told investors. “The term of the new power purchase agreement is being proposed by the company to be five years.”