Pakistan’s Power Division has introduced new rules to fix problems in how coal-fired power plants buy imported coal. These changes could save the country about Rs 380 million every year, with the benefits expected to reach electricity consumers through lower bills.
Federal Minister for Power Awais Leghari led meetings where officials carefully studied actual purchase data, existing contracts, and market practices. They found clear weaknesses. Different power plants often received very different discounts from the same coal suppliers. Discounts ranged from as low as 25 cents to as high as $7.12 per ton. In some cases, better discounts were available under backup deals, yet plants still bought coal at higher prices.
Because fuel costs are passed on to consumers, these higher purchase prices increased electricity bills for households and businesses. The government has now decided to apply a simple principle called the “best available discount.” Under the new guidelines, power plants must buy coal from the supplier offering the highest discount against the international market price. They will no longer be allowed to choose a supplier that offers a lower discount when a better option exists.
The Power Division is sending these guidelines to NEPRA, the electricity regulator, to make the rules official. Officials say the reforms will improve transparency and competition without interfering in normal commercial decisions. The focus is on removing unnecessary costs so that consumers get real relief.