National Electric Power Regulatory Authority (NEPRA) has approved reduction in electricity price by Rs. 3.11 per unit on Thursday for the month of November — under the monthly fuel adjustment formula.
Reduction in electricity price will effectively save people’s 15 billion rupees. The overall electricity generation for November was 7.17 billion units which cost Rs. 25.24 billion. The fuel cost and electricity production ratio remained Rs. 3.52 to 1 unit. The consumers were, however, charged Rs. 7.30 per unit during the month of November for the same cost.
In a public hearing, that was chaired by Chairman Nepra Tariq Sadozai, a petition was filed by Central Power Purchasing Agency (CPPA), requesting a decrease of Rs. 1.47 per unit on account of fuel adjustment. CPPA also recommended granting relief package to the companies worth Rs. 15 billion, in order to conciliate companies producing electricity, which was rejected by NEPRA officials during the hearing.
Meanwhile, CPPA was entitled by NEPRA to clear the dues worth Rs. 4.5 billion which they owe to the electricity grids. Eventually, upon discussion, the regulatory body decided to cut the electricity price by Rs. 3.11 instead of Rs. 1.47.
The new tariff will be effective from December’s bills.
The consumers of K-Electric, however, cannot avail the recommended price relief. K-Electric is a privatized company and distributes its own generated electricity to the consumers in Karachi, therefore, it is not covered under this resolution.
On the other hand, the lifeline consumers, that are consuming up to three-hundred units per month, cannot avail this relief as they are already being provided subsidized electricity.