Pakistan debates coal-fired electricity tarrifs (as incentive for domestic coal extraction)

[phantom power]

If I understand this correctly, they are debating what to charge rate-payers, as a sufficient incentive for the coal-extraction industry to come in and mine their coal.

KARACHI: A high-level government meeting on Friday will decide the tariff for coal-fired power plants as the country struggles to cope with a worsening energy crisis, The News has learnt.

(...)

The Sindh Coal Authority (SCA) has urged the federal government to fix an upfront tariff of at least eight cents per kwh for energy produced from coal-fired power plants. But that was before oil prices surged to $100 per barrel.

“Eleven cents is nothing, considering a saving of $700 million in terms of fuel substitution,” said a source involved with the proposed $2.2 billion coal-fired power plant of Hassan Associates. “It’s nothing, considering 14 cents given to oil-based power plants.”

An upfront tariff against a competitive bidding could help attract foreign investors, he said arguing unless better rate of return was offered there was no point in investing in Pakistani market.

http://www.thenews.com.pk/print1.asp?id=90270