24 paisa per unit cut likely

Electricity distribution companies have requested a tariff reduction of 24 paisa per unit for August.

ISLAMABAD: Electricity distribution companies have requested a tariff reduction of 24 paisa per unit for the month of August according to the fuel variation tariff adjustment formula.

The National Electric Power Regulatory Authority (Nepra) has agreed to consider the request of the distribution companies through the Central Power Purchasing Agency (CPPA). It is expected that the distribution companies will be allowed the proposed decrease in tariff, according to sources.

The cost incurred by distribution companies in the provision of electricity during August was Rs3.77 per unit. The reference price fixed by the government for the month was Rs4.01 per unit. The difference between the two prices is 24 paisa per unit and is the amount of decrease requested by the distribution companies.

Nepra officials said that the decision will be taken through the CPPA after taking into consideration the request put forth by the companies, the companies’ revenues and expenditures.

Published in The Express Tribune, September 21^st, 2010.