ISLAMABAD [Pakistan], Questions have been raised regarding import of COA for power plants amid concerns over affordability of power supply, which is impacting demand and diverting consumers from the national grid. Despite the broad policy direction of both the government and the International Monetary Fund (IMF) in favor of localization and import substitution, the procurement of imported coal for power plants in the long term has come under scrutiny, Dawn reported, adding that power plants are increasingly Looking towards the long term. Import coal, taking advantage of a market with adequate liquidity and availability. This change came after the National Electric Power Regulatory Authority (NEPRA) streamlined SPO imports through procurement guidelines, which led to a significant decline in CoA prices. Sensing irregularities, former acting power minister Muhammad Ali initiated an investigation into the coal procurement for the Sahiwal Coal Power Project.However, the investigation appears to have been put on hold despite the recommendations of the expedited report, with Rehan Akhtar, CEO of the Central Power Purchasing Agency (CPPA), ignoring inquiries about coal procurement during a public hearing, and Kind of compared the question to discouraging oil and gas. Investigation. He urged that any evidence of wrongdoing be provided to NEPRA for review. NEPRA, on its part, declined to comment on the issue, though it confirmed receipt of the former minister's inquiry letter. Interestingly, NEPRA's regulatory authority over coal procurement is limited to issuing guidelines and relying on invoices from CPPA for tariff calculations. As NEPRA's Dawn Records reports indicate, the Sahiwal power project was purchasing coal at a much higher price than other industries like cement and textiles during the same period.This price disparity has raised concerns about increased costs and the potential financial burden on consumers. The monthly coal requirement of the Sahiwal project is substantial, and the increased prices could translate into significant costs for consumers if similar practices are adopted by other power plants, NEPRA has introduced guidelines for spot coal consumption. Coal purchase reduced the cost of power generation in the Sahiwal project. However, many suppliers complained of facing constraints from the power project, resulting in losses and discouraging new participants. The preferential treatment given to historical suppliers, which included granting them the option to make the lowest bid and giving them priority in supply contracts, raised further questions.Regarding fairness and transparency in the procurement process In December 2023, the power producer entered into a long-term coal supply contract in favor of the historical supplier. The timing and details of this contract raised suspicions of pre-arranged agreements and weak oversight between both the government and the regulator. The absence of updated guidelines from NEPRA for long-term procurement allowed the historical supplier to continue supplying coal without facing competition. Allowed to be kept, which raised concerns. These developments about the lack of a competitive market coincide with ongoing concerns from multilateral organizations about inefficient procurement practices, opaque procurement processes and lack of competition, all of which contribute to high energy prices and rising circular debt. There are indications that similar procurement processes may be in the works on other power projects, Dawn reports, potentially cementing the exception as the norm in the market.