ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has decreased power tariffs by Rs3.24 per unit for the month of December 2014 following the Fuel Adjustment Formula.
The application seeking reduction in power tariff was filed by Central Power Purchasing Agency (CPPA) with Nepra and heard on Tuesday. At a Nepra public hearing in Islamabad, chaired by Tariq Saddozai, the power regulator agreed to a Rs3.21 per unit average cut in the fuel cost component of electricity prices for the month of December 2014, which would be reflected in consumer bills for the month of February onwards. The consumers in Karachi Electric Supply Company will not get benefit of this decision.
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In a statement issued here spokesman said Nepra has decided to provide relief to all companies except Karachi Electric Company by Rs3.24 per unit in the cost of electricity. Power tariff has been reduced under the head of FAS.
Relief amounting to Rs21 billion will be extended to electric agencies under FAS for December, 2014. The consumers have paid those bills with the higher tariff and now the government will pay back the difference by deducting it from their bills in the month of March this year.
The average cost of producing and delivering electricity across nearly all of Pakistan (K-Electric) is currently Rs13.50 per kilowatt-hour, of which Rs9.53 per unit is the fuel cost. However, consumers are charged Rs11.50 per unit on average, with a nearly 15% subsidy on most electricity bills.
