Islamabad (HRNW)- The Power Division has issued new reform guidelines to the National Electric Power Regulatory Authority (NEPRA) to address shortcomings in the procurement of imported coal, with the measures expected to save approximately Rs380 million annually at the pre-procurement stage.
The reforms follow several meetings chaired by Energy Minister Owais Leghari, during which coal procurement data, contracts and prevailing international market practices were reviewed. The government has decided to introduce a best-available-discount principle, preventing power plants from purchasing coal from a supplier at a lower discount when the same supplier is offering a higher discount elsewhere.
According to the Power Division, different power plants previously received discounts ranging from 25 cents to $7.12 per tonne from the same supplier. In some cases, backup supply contracts offered higher discounts than primary contracts, but power plants did not purchase coal at the more favorable rates, resulting in additional costs being passed on to electricity consumers.
Energy Minister Owais Leghari said the government is using data and market analysis to identify procurement shortcomings and address them through regulatory and policy reforms. He emphasized that the objective is to make fuel procurement more transparent and efficient and ensure that savings from the reforms directly benefit electricity consumers.
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