{
  "id": 13826120,
  "title": "PQEPC opposes one-year limit on coal supply deals",
  "url": "https://urgent.news/2026/10/11/pqepc-opposes-one-year-limit-on-coal-supply-deals",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-11T23:45:11.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443747/pqepc-opposes-one-year-limit-on-coal-supply-deals"
  },
  "original_language": "en",
  "account": "Port Qasim Electric Power Company (PQEPC) has voiced opposition to the proposed one-year limit on coal supply agreements, expressing concerns that it could jeopardize fuel security, disrupt procurement operations and heighten risks for coal-fired power plants. The company's comments were submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G). PQEPC also challenged the proposed benchmarking mechanism for coal procurement discounts, arguing that variations in discounts offered by suppliers alone cannot prove irregularities in procurement. In a letter to CPPA-G, the company urged the government and CPPA-G to evaluate its procurement practices against its approved tariff determination, generation license, power purchase agreement and implementation agreement. The 2x660-megawatt coal-fired power complex operates under its approved project documents and maintains that it has procured and continued to procure imported coal in accordance with those documents. PQEPC argued that the proposed benchmarking requirement against the highest discount offered in comparable tenders is not explicitly stated in the NEPRA Act 1997, regulations under it or the project's contractual documents. The National Electric Power Regulatory Authority (NEPRA) guidelines are considered policy guidance and cannot override contractual and regulatory obligations, the company asserted. PQEPC rejected the comparison of headline discounts based solely on quantities, contract duration, payment currency, delivery arrangements, coal quality specifications and performance guarantees. The company rejected the comparison of discounts ranging from US$0.20 to US$7.12 per metric tonne, stating that the latter discount related to an unimplemented contract backed by a performance guarantee only a fraction of PQEPC's exposure. The company raised concerns over procuring Indonesian coal, pointing out that historical discounts against the ICI-3 benchmark cannot be considered a permanent market entitlement when coal specifications, quality thresholds, availability and market conditions have changed. Seaborne coal exports from Indonesia declined by 23.34% year-on-year in August 2026, citing supply and logistical constraints. PQEPC argued that suppliers might be unable to maintain discounts for coal meeting lower quality specifications and could require higher prices for coal meeting revised requirements. The company defended instances where the same supplier offered different discounts to different IPPs, stating that variations reflect differences in risk profiles, contract tenures, quantities and payment terms. PQEPC maintained that procuring coal from a supplier offering lower discounts while a higher-discount contract remains in place could be due to a shortfall or default by the principal supplier rather than an attempt to circumvent the benchmark. Opposing the mandatory one-year cap on coal supply agreements, PQEPC argued that the restriction would be commercially impractical and could weaken rather than enhance fuel security.",
  "summary": "ISLAMABAD: Port Qasim Electric Power Company (PQEPC) has opposed the proposed one-year limit on coal supply agreements, arguing that the restriction could undermine fuel security, disrupt procurement operations and increase risks for coal-fired power plants, sources told Business Recorder . In its comments submitted to the Central Power Purchasing Agency-Guarantee (CPPA-G), the company has also…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}