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Money & Business

Coal Deal Delays Could Raise Power Costs

Fresh bidding improved the discount by $1.02 per tonne, but the switch of suppliers is still pending.

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A coal power plant linked to delayed coal procurement deals
Delays in competitive coal procurement by independent power producers could raise electricity costs. Photo: Enable Pakistan

Delays in adopting competitive coal procurement deals by independent power producers could prevent savings and increase electricity costs for Pakistani consumers. Fresh bidding secured a $2.10 per tonne discount.

The cheaper coal is not yet in place. The update says the change of suppliers is still pending.

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Why coal procurement delays matter

The $2.10 discount compares with $1.08 per tonne under interim arrangements, an improvement of $1.02 per tonne. The transition to new suppliers remains pending, while further extensions to existing contracts are being considered. Until that switch happens, the lower price is a bid result, not a saving already reaching bills.

Our verdict

The bid is $1.02 per tonne better than the interim discount. Consumers only gain if producers actually adopt the new deals, and that step is still pending.

Follow for more updates.

Frequently asked questions

What is being delayed?

Adoption of competitive coal procurement deals by independent power producers.

What discount did fresh bidding secure?

A discount of $2.10 per tonne, against $1.08 per tonne under interim arrangements.

How much better is the new bid?

The improvement is $1.02 per tonne.

Are electricity bills already lower?

No. The transition to new suppliers remains pending, and the delay could increase costs instead.

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