National Electric Power Regulatory Authority (NEPRA) on Tuesday notified a decrease of Rs 3.24 per unit in the electricity prices that the consumers consumed in the month of December 2014.

In the hearing held in Nepra the decrease was made following the Fuel Adjustment Formula. As a matter of fact, it must not be considered a permanent decrease but only applies to the units those were consumed in December 2014.

Technically speaking, the government calculates the electricity cost in the end of every month. If the fuel cost is higher than it received from the consumers that is added in the next bills and same is done if it is found lower than the consumers paid.

The consumers have paid those bills with the higher tariff and now the government will pay back the difference by deducting it from their bills in the month of March this year.  The consumers in Karachi Electric Supply Company will not get benefit of this decision. The application seeking reduction in power tariff was filed by Central Power Purchasing Agency (CPPA) with NEPRA. Application was heard on Tuesday. Representative of Punjab raised objection during the course of hearing that statistics of power production from Guddu and Nandi Pur power projects were not included in the application.

In a statement issued here spokesman said Nepra has decided to provide relief to all companies except Karachi Electric Company by Rs 3.24 per unit in the cost of electricity. Power tariff has been reduced under the head of FAS. Relief amounting to Rs 21 billion will be extended to electric agencies under FAS for December, 2014. The relief to the tune of Rs 3.24 will be made part of electricity bill in the month of March, 2015.