NEPRA approves cut in power tariffs

Notification for implementation to be issued by ministry.

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a reduction of 32 paisas in power tariff per unit under the monthly fuel variation tariff adjustment formula for the month of October.

A copy of the approval has been sent to the ministry of water and power which can then issue the relevant notification to authorise the reduction.

A notification had previously given Nepra the authority to change electricity tariffs under the fuel price adjustment mechanism but since the related ordinance has expired, the federal government needs to issue a notification to adjust electricity tariffs.

Nepra can only decide electricity tariffs but not implement them due to the expiry of the ordinance.

Nepra had allowed the reduction in electricity tariffs after hearing a request made by electricity distribution companies through the Central Power Purchasing Agency (CPPA). According to sources, the cost incurred by companies in the supply of electricity to consumers was Rs4.61 per unit and the reference price for October had been fixed at Rs4.93 per unit. The difference of 32 paisa has been approved as the reduction in tariffs for the month.

Published in The Express Tribune, December 1^st, 2010.