Nepra faces dilemma over PQEPCL’s coal procurement extension

Business Recorder · 23/10/2026، 12:47:19 AM

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is reportedly facing a difficult situation over coal procurement by Port Qasim Electric Power Company (PQEPCL), as the power producer is seeking a further extension in its interim procurement arrangement despite the availability of more competitive offers through a fresh bidding process, well-informed sources told Business Recorder . Sources said PQEPCL has approached senior-level officials of Nepra for another extension of a few months, although the interim period allowed by the regulator has already expired. The proposed extension, if granted, could delay the implementation of improved procurement terms and deprive electricity consumers of potential savings in generation costs. The issue has also attracted the attention of the Power Division, which is reportedly opposed to any further extension of the interim arrangement on the grounds that consumers are not receiving the benefit of more competitive coal procurement rates. READ MORE: PQEPC opposes one-year limit on coal supply deals According to procurement details, PQEPCL initially entered into a long-term Coal Supply Agreement (CSA) with Wah Industries Limited (WIL) for the supply of coal at no discount against the applicable international coal price indices. The original contractual period covered May 2024 to April 2025. The agreement was subsequently extended to maintain continuity of coal supplies. On April 23, 2024, PQEPCL initiated a competitive bidding process for a long-term coal supply arrangement covering September 2025 to August 2030, with June 14, 2024, set as the deadline for submission of bids. Two suppliers participated in the process, offering discounts of USD 0.50 per tonne against the API-4 index, USD 0.10 per tonne against the ICI-3 index and USD 0.20 per tonne against the NEWC index. However, litigation resulted in an interim injunction on January 2, 2025, affecting the execution of the coal supply agreements. The dispute was subs