Power Bills: Public Burdened by Sahiwal Coal Power Plant’s Mismanagement

KARACHI: In Pakistan, stories of inflation and injustice are all too common, the recent case of the Sahiwal Coal-fired Power Plant stands out as a glaring example, where a single decision placed a multi-million-rupee burden directly on the public.

A tender was issued for coal supply to the plant, with two private companies bidding. The first company offered a $2.51 per metric ton discount, while the second offered only $0.65 per metric ton. NEPRA had clearly directed that if supply was to be taken from both companies, the lower price (higher discount) would apply to both.

While coal from the first company was purchased at the agreed discount, the controversy erupted when the plant’s management ignored NEPRA’s directive and bought multiple shiploads from the second company at its lower discount rate. According to NEPRA, these purchases should also have been made at the $2.51 discount, but this did not happen — resulting in losses worth millions of rupees, a cost that is now being recovered from the public through inflated electricity bills.

When NEPRA took action, the plant’s management moved the matter to a civil court — a move seen as an attempt to delay accountability rather than provide answers. This is not just an isolated incident, but a warning sign of how major power plants’ decisions can unfairly drain citizens’ hard-earned money. If strict action is not taken, other plants could follow the same pattern, leaving consumers to face even more shocks on their electricity bills

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G.M Jamali

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