IHC to look into ‘irregularities’ in coal purchase by power plants

The Islamabad High Court (IHC) will look into alleged irregularities in the purchase of coal for power plants, which increased the cost of electricity generation. A group of petitioners filed an application with the court, raising questions over the bidding process for procurement of the coal. They urged the court to order the Ministry of Energy to conclude its inquiry initiated after the power divisions wrote a letter on March 1. The applicants have also sought directions for the National Electric Power Regulatory Authority (Nepra) to issue effective and transparent guidelines for the procurement of coal to be used by power producers. While arguing before a single-judge bench comprising Justice Miangul Hassan Aurangzeb, the petitioners’ counsel, Dr Farogh Naseem, stated that Nepra approves the tariff for the generated electricity and passes on the burden of Fuel Cost Components (FCC) — the cost of fuel used to produce electricity — to users.