Nepra approves Rs1.96/unit reduction in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday approved Rs1.96/unit reduction in the power tariff under fuel price adjustment for the month of April.

The decision was made during a public hearing chaired by Nepra chairman Tariq Sadozai. In a petition, the Central Power Purchasing Agency (CPPA) has sought adjustments of variation incurred in the fuel cost for power generation last month.

Earlier, the CPPA, in its petition submitted with the regulator, sought Rs1.75/unit reduction in the power tariff on account of monthly fuel price adjustment. However, the regulator by approving Rs1.96/unit decrease in power prices approved relief worth Rs15 billion for all the power consumers.

The reduction would not be applicable to the consumers using less than 300 units and K-Electric. In the petition, the CPPA said a total of 8.609 billion units were sold to the distribution companies during April.

The reference fuel price was fixed Rs7.62/unit, while the actual price remained at Rs5.8804/unit. As per the CPPA petition, the cost of power generation through furnace oil stood at Rs10.24/unit, gas at Rs4.29/unit, diesel at Rs14.98/unit, hydel Rs0.49/unit, RLNG Rs8.08/unit and nuclear at Rs1.005/unit.