Background: Most of the power plants in Pakistan were importing low grade south African coal rb2/rb3

but pricing it on the basis of rb1 by only offering price adjustments on the basis of NCV. No differential
was applied causing millions of dollars losses to the government and the end users in terms of higher
power generation cost. NEPRA which is regulating authority in Pakistan applied the differential model
and since then the power plants have been reluctant to apply the differential model. Based on this
information can you pls help me answer the following and propose an efficient model being used by your
power plant or country.

Whether the procurement of coal through tenders justified?

Whether procurement of 10% - 20% coal from spot markets justified?

Whether the use of API-4 index for South African coal having CV ≥ 5850 (Rb1) kcal/Kg is Justified?

Whether the application of published price differentials (discounts) of 5700 (RB2), 5500 (RB3) and 4800
to API 4 for South African coal having CV < 5850 is justified?

Whether the use of average of M50 and ICI-3 indices for Indonesian coal of CV > 4600 kcal/kg (NAR)
instead of ICI-3 is justified?

Whether the use of average of M42 and ICI-4 indices for Indonesian coal of CV < 4,600 kcal/kg instead of
ICI-3 is justified?

Whether the use of GC NEWC for Australian coal having CV > 5850 kcal/kg and with appropriate discount
for CV between <5850 and 5600 kcal/kg justified?

Whether the use of API 5 for Australian coal having CV between <5600 and 5300 kcal/kg and with
appropriate discount for <5300is justified?

If you can help me answer these questions with current coal procurement practices under long term
contracts and spot purchases, I will be extremely grateful.