Fuel supply on exclusive basis to 3 IPPs: CCP rejects PSO’s exemption extension request

ISLAMABAD: The Competition Commission of Pakistan (CCP) has rejected an application of Pakistan State Oil (PSO) meant for an extension in exemption on fuel supply on an exclusive basis to three independent power producers (IPPs), well-informed sources told Business Recorder.

The CCP, in a letter to the PSO managing director, has cited reference to three applications filed by the PSO with the commission, seeking extension in the “exemption” pursuant to relevant provision of the Competition Act, 2010 on the Fuel Supply Agreements (FSAs) between the PSO and three IPPs; i.e., Pakgen Power Limited, Lalpir Power Limited and Saba Power Company Limited.

According to the CCP, the applications have been closely reviewed by the commission. The applicant and other parties in the respective FCAs have also been given the opportunity to present their views on the applications filed with the commission.

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In this regard, written comments have also been received, besides meetings were also held, which inter-alia discussed specific queries that the commission had on the application and covenant. Necessary information was also sought from other relevant stakeholders along with the recent status of the fuel supply arrangements in the “relevant market”.

Foregoing in view an applicant’s letter of January 12, 2024, the three applications have been with no other consideration of extension in the exemption(s) previously granted, that have already expired.

“The Commission is committed to fostering competition in all spheres of economic and commercial activities and it’s expected that this will also enhance efficiency in the relevant market,” said the CCP letter written by Muhammad Fahad, joint director (exemptions).

Copyright Business Recorder, 2024