Indepe­ndent power producers found overcharging users through costly coal procurement

Independent power producers in Pakistan that run on imported coal have been found overcharging consumers through opaque coal procurement, with the extra costs passed on via monthly fuel price adjustments. Dawn reports that both the power division and the electricity regulator Nepra have flagged inefficiencies, pointing to a recent competitive bid for the state-owned Jamshoro plant that secured a discount of seven dollars and twelve cents per tonne, while some IPP contracts only got twenty to fifty cents. Nepra directed Port Qasim Electric Power Company to rebid, but officials say the firm bought about one point two million tonnes of coal before the new tender, at a discount of around fifty cents per tonne, making the difference roughly eight million dollars. The power division says fresh policy guidelines could save the national exchequer up to three hundred eighty million rupees annually, and warns the impact could grow if other plants follow similar practices.

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