FEL not being provided level playing field

ISLAMABAD: M/s Fatima Energy Limited (FEL) which established a 120 MW bagasse/ coal-fired power plant in Muzaffargarh with an investment of Rs 32 billion is reportedly not being provided level playing field due to “unseen” hurdles in concerned ministries, well informed sources told Business Recorder.

In a letter to Secretary Power Division, Rizwan Memon, the company argued that the project is able to supply low cost critically required power immediately to the people of Pakistan, but unfortunately it has been idle since last 21 months.

According to the CEO FEL, the company has complied with all procedural and regulatory requirements by submitting mutually acceptable draft Interim Agreement to CPPA (G)/Ministry of Energy (Power Division) to be followed by complete power purchase agreement (PPA) as per Take and Pay Nepra determined Tariff of January 18, 2018. FEL being low cost and reliable energy producer with levelized Nepra determined tariff of cents 7.72, would save Government of Pakistan / consumers about Rs 2 billion per annum if compared with similar bagasse only producers of power or other high cost power producers.

Published in Business Recorder, 9th July, 2018