Port Qasim Electric Power Company opposes one-year cap on coal supply contracts

According to Business Recorder, Port Qasim Electric Power Company (PQEPC) has objected to a proposed cap of one year on coal supply contracts. In written comments to the Central Power Purchasing Agency-Guarantee (CPPA-G), the firm, which runs a 1,320MW coal-fired plant, warned that the limit could weaken fuel security and make procurement harder for power stations.

The company also objected to a plan that would set procurement prices by reference to top discounts in similar tenders. It questioned the Power Division's comparison, which spanned $0.20 to $7.12 per tonne, arguing that such figures need adjusting for coal quality, volumes, contract length and payment terms. It said the largest discount came from an unimplemented contract with a weak performance guarantee, and it pointed to tighter Indonesian supplies and stricter quality demands.

PQEPC argued that annual tendering could cause delays and supply risks, and that backup buying at worse prices may be needed when main suppliers fail. It also pointed out that its tariff framework already lets NEPRA review fuel costs through monthly fuel price adjustments, and it cited losses of about Rs1.62 billion under spot coal purchase rules. The company proposed that a designated public-sector agency handle coal procurement and supply, an option set out in NEPRA's June 2026 recommendations.