ISLAMABAD - Nepra is all set to reduce power tariff for K-electric consumers by 74 paisa per unit, for the month of October 2014, under monthly fuel charges adjustment.

In its petition the K-electric has submitted that due to fuel price decrease it saved 62.889 paisa per unit and under power purchase price the savings were 10.708 paisa per unit or kilowatt hour, as compare to the cost Nepra has fixed for power generation.

The fuel cost variation of K-electric own generation was Rs894.749 million, while from external generation sources the difference was Rs152.349 million, hence the total variation for the month of October was Rs1047.098 million.

On the basis of above calculations the company declared that it actually saved 73.597 paisa on each unit as compare to the reference price set by the authority.

Total units sent out in October 2014 were calculated 1,422 million.

The company in its petition has written that the submission is based on the original invoice of NTDC for the month of Sep-14 and the units sent out on gas and furnace oil at Bin Qasim Power Station have been worked out in the ratio of actual units generated on Gas & Furnace Oil at Bin Qasim. The company has further clarified that the price of gas, used for the power generation, was calculated without GID Cess, as per the order of Sindh High Court.

Authority on Friday announced to hold a public hearing on the petition of K-electric for the decrease in tariff on December 11, 2014, at Nepra headquarter, Islamabad. In the hearing, if no major objection is raised to the request, the authority would allow the decrease and it would be passed on to the consumers in next month bills.