Rs3.21 per unit relief in power tariff likely today

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is likely to reduce the power tariff by Rs3.21 per unit today (Tuesday), providing huge relief of Rs21 billion in the electricity bills the consumers will be receiving in March.
The power regulator will formally today (Tuesday) announce the relief of Rs3.21 per unit under the fuel adjustment mechanism. The Central Power Purchase Agency (CPPA) had submitted the petition with Nepra seeking the relief in power tariff by Rs3.21 per unit for the month of December 2014. The CPPA in its petition had adopted the stance that the reference fuel cost for the month of December 2014 was fixed at Rs9.53 per unit, but the factual fuel cost remained at Rs6.32 per unit. In the month of December 6.57 billion units of power were sold to the electric power distribution companies. The electricity generation cost has tumbled mainly due to reduction in the prices of furnace oil and diesel.
In the month of December the fuel cost of coal-based electricity remained at Rs4.94 per unit, of diesel Rs19 per unit, furnace oil Rs12.38 per unit, of gas Rs3.57 per unit and nuclear at Rs1.18 per unit. The cost of electricity imported from Iran during December stood at Rs10.20 per unit.