ISLAMABAD: After massive cut in petroleum prices, National Electric Power Regulatory Authority (Nepra) has decided to decreases power tariffs by Rs2.08 per unit, or 20.2%, from next month on account of lower fuel prices for the month of January 2015.
This was announced by Nepra Vice-Chairman Habibullah Khilji, while chairing a public hearing. He said that this is expected to translate into a Rs12 billion decrease in monthly electricity bills across the country, except Karachi.
The Central Power Purchase Agency (CPPA) had sought Rs2.09 per unit reduction in power rates from Nepra for all state-owned distribution companies because of the cheaper cost of fuel for power generation.
The CPPA stated that the average fuel cost during January 2015 recorded at Rs11.36 per unit against the reference fuel cost of Rs9.27 per unit, which was earlier fixed by Nepra. This reduced the generation cost by Rs2.09 per unit.
The CPPA reported to the regulator that 6.85 billion units were sold to the distribution companies during January 2015. The total cost of power generation was Rs55.75 billion.
