Islamabad- National Electric Power Regulatory Authority (NEPRA) today approved reduction in power tariff by Rs. 0.48 per unit.

In a hearing at NEPRA, Central Power Purchase Agency told that devaluation of dollar caused reduction in prices of furnace oil. NEPRA said that they are providing direct relief to the consumers, following the reduction in cost of production.

The regulator directed the distribution companies to pass on the impact of reduced fuel cost of power generation to consumers next month.

The reduction in tariff was made on account of a monthly fuel price adjustment for October, which would not affect lifeline consumers using under 50 units per month because they are already subsidized, as well as all consumers of K-Electric, for whom tariff is determined separately.

The reduction was approved on a petition filed by CPPA on behalf of distribution companies on account of lower cost of power purchase and better energy mix as part of monthly fuel price adjustment (FPA).

Under the fuel price mechanism approved by parliament, NEPRA is required to notify a reference fuel price for distribution companies at the start of every financial year and then pass on any change in average fuel cost, exchange rate variation and energy mix to consumers every month through the FPA.

The reduced fuel cost is expected to provide a relief of about Rs8.12bn to consumers next month.