ISLAMABAD: The Sahiwal coal-fired power plant has requested a 220% increase in its daily fund allocation—from Rs 257 million to Rs 800 million—to ensure uninterrupted operations during the upcoming summer months. This request comes amid forecasts of a significant decline in hydropower generation due to reduced rainfall and snowfall this year.
According to sources familiar with the matter told Newzshewz that Dr. Li, Chief Executive Officer (CEO) of China Huaneng Shandong Ruyi (Pakistan) (HSR), has written a letter to the CEO of the Central Power Purchasing Agency-Guaranteed (CPPA-G), highlighting the current funding shortfall.
Dr. Li stated that due to ongoing water shortages, gas supply constraints, and units malfunctions, power generation from hydropower and RLNG-based sources has dropped significantly compared to the same period last year.
He was of the view that with rising temperatures and increased electricity demand following the Eid holidays, the Sahiwal power plant has been operating at high capacity, consuming over 10,000 tons of coal daily—demonstrating its critical role in maintaining grid stability and meeting national energy needs.
Despite the plant’s importance, Dr. Li expressed concern that the current daily payment of Rs 257 million from CPPA-G is insufficient to cover increased fuel costs and maintenance expenses tied to higher generation levels.
As of April 21, 2025, the total overdue amount owed to the plant stood at over Rs 50 billion, with total receivables amounting to Rs 114 billion.
“We request CPPA-G to increase the daily payment allocation to HSR to at least Rs 800 million per working day to ensure sustainable operations and meet coal requirements,” Dr. Li wrote, adding that he hoped CPPA-G would recognize the urgency of the situation and act swiftly.
Meanwhile, the National Power Control Centre (NPCC), acting as the System Operator, has already warned the government of challenges in maintaining a stable power supply during the summer if fuel needs are not met promptly, citing a looming shortfall in hydel generation.
The National Electric Power Regulatory Authority (NEPRA) has also asked the government to submit updated generation plans, including those for hydropower. Officials warn that reduced hydel output will not only impact the availability of affordable electricity but could also lead to higher tariffs under the monthly Fuel Charges Adjustment (FCA) mechanism. Ends
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