ISLAMABAD, Dec 13: The Kot Addu Power Company (Kapco) and Hub Power Company (Hubco) are expected to enhance their generation capacity significantly to avert looming power shortages in the country.

Informed sources told Dawn on Monday that managements of the two companies have held initial discussions with the federal government as well as with the National Electric Power Regulatory Authority (Nepra) on the subject.

These sources said both the government and Nepra have encouraged the two companies to enhance their generation capacity because it would reduce overall transmission line and infrastructure costs to the utilities.

The two companies could together add up to 1,000-mw of power with minimum cost and minor adjustments of their existing capacity and within a short period of time, the sources said. However, they have not yet submitted their formal proposals in this respect.

They would, however, be required to submit their separate tariff applications afresh before the Nepra for the additional power capacity and would not be allowed to sell their additional power under the existing tariff structure.

The sources said the government was looking at all possible cost effective options to increase power generation to meet power shortage which stood at about 2,000mw at present.

Kapco, a 1,600mw thermal power project is owned jointly by the government and International Power of UK. The government with 64 per cent shareholding in the company plans to divest additional 20pc shares of the company through public offering very soon.