Coal procurement: KATI urges Nepra not to grant extension to PQEPCL sans bidding

Business Recorder reported that the Korangi Association of Trade and Industry (KATI) has asked NEPRA to refuse Port Qasim Electric Power Company (PQEPCL) another extension for buying coal through an interim arrangement without competitive bidding. KATI wants the regulator to set a firm deadline for the pending tender and ensure only justified, competitively priced fuel costs are recovered from consumers through monthly fuel cost adjustments.

KATI said the gap between a reported discount of USD7.12 per tonne at another power plant and the USD1.08 discount reflected in PQEPCL’s fuel costs could amount to USD18.12 million on about three million tonnes of coal. It estimated the potential annual cost at around USD20 million, subject to NEPRA’s verification, and sought scrutiny of procurement volumes, suppliers, tender terms and the proposed Indonesian coal requirement. The association also asked NEPRA to disclose the tender process and verify deliveries, vessel orders and stocks before approving further adjustments.