Islamabad, May 20, 2025: Kot Addu Power Company Limited (PSX: KAPCO) has confirmed that the National Electric Power Regulatory Authority (NEPRA) has formally sanctioned the Tri-Partite Power Purchase Agreement (TPPA) between KAPCO, the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), and the National Grid Company of Pakistan Limited.
As per an official stock filing, NEPRA issued its approval through a letter dated May 19, 2025, which also includes all annexures related to the agreement.
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However, the operational effectiveness of the agreement is dependent upon certain regulatory certain conditions.
Prior to the TPPA’s implementation, KAPCO is obligated to carry out an Initial Capacity Test (ICT) as well as a Heat Rate Test (HRT) to assess the plant’s operational performance.
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An independent engineering firm must verify the Simple Cycle Efficiency and Heat Rate figures of the facility. These test results and technical evaluations are required to be submitted to NEPRA for examination.
The TPPA will only become active once NEPRA reviews the data and gives its final nod based on the plant’s verified performance standards.
