The National Electric Power Regulatory Authority (NEPRA) on Wednesday decreased electricity tariff by Rs2.8 per unit under monthly fuel adjustment for January, 2015.

The regulator has finalized the new tariff while hearing the plea of Central Power Purchasing Agency (CPPA) on Wednesday.

The CPPA, in its plea, had stated that reference fuel cost was fixed at Rs11.36 however overall expenses for electricity generation remained Rs9.27 per unit.

In January, 6.85 billion units electricity was supplied to the distribution companies and overall fuel cost on power generation was recorded at Rs55.75 billion.

The application stated that the electricity cost for production by coal was Rs4.49 per unit, diesel Rs14.91, furnace oil Rs10.26 and gas Rs4.27 per unit. Cost of electricity generation through furnace oil was reduced by Rs26 billion due to cut in fuel prices.

On this, the Nepra approved reduction in power tariff by Rs2.8 to provide relief to the masses under the monthly fuel adjustment plan. The new tariff will not be applicable on consumers using less than 50 units and K-Electric consumers.