Kot Addu Power Company Limited (KAPCO) has reached a significant milestone in its energy expansion strategy with the National Electric Power Regulatory Authority (NEPRA) approving a provisional tariff for its highly anticipated 500-megawatt (MW) project, consisting of Block I and Block II.
In a formal disclosure to the Pakistan Stock Exchange (PSX) on Thursday, KAPCO confirmed that NEPRA had granted a provisional tariff under Rule 4(7) of the NEPRA Tariff (Standards and Procedure) Rules, 1998.
Comprehensive Details Shared with PSX Investors
As per the official announcement, Annex A of the stock filing outlines the terms and conditions associated with the provisional tariff. This includes vital financial, operational, and regulatory metrics that define the project’s structure, estimated cost recovery, return on equity.
Such transparency reinforces investor confidence, especially when a high-capacity infrastructure project like this one is under consideration.
The approved project — comprising Block I and Block II with a combined generation capacity of 500MW — is positioned to strengthen Pakistan’s national grid, reduce dependence on imported fuel, and support the country’s long-term energy sustainability goals.
Established as one of the largest Independent Power Producers (IPPs) in Pakistan, KAPCO has a legacy of reliable electricity generation, currently operating a plant with an installed capacity exceeding 1,600MW.
The regulator’s decision to grant a provisional tariff under Rule 4(7) is indicative of NEPRA’s adaptive and responsive governance. By enabling companies like KAPCO to proceed with preparatory work even before final tariff issuance, NEPRA is playing a facilitative role in accelerating energy infrastructure development.
KAPCO’s Pivotal Role in Pakistan’s Power Sector
This proactive capacity expansion reflects KAPCO’s long-term commitment to supporting Pakistan’s economic development by ensuring uninterrupted and affordable electricity to consumers and industries alike.
Although the provisional tariff enables initial mobilization, full-scale operations of the 500MW project are contingent upon the completion of regulatory and corporate approvals.
The company has stated that all necessary corporate documentation and regulatory submissions are already underway, indicating that the project is on a fast-track to commercial launch.
From an investor standpoint, the provisional tariff approval significantly enhances KAPCO’s investment outlook. Analysts anticipate that once operational, the new blocks will deliver robust revenue growth, optimize operational efficiency, and improve EPS for stakeholders.
 secures NEPRA’s provisional tariff approval for its 500MW Block I & II project.){kind=link}