The Rs4.87 per unit reduction will apply to K-Electric customers.

Nepra Chairman Tauseef H. Farooqui heard a request from K-Electric about fuel cost adjustment (FCA) charges. The power utility had proposed to reduce FCA for the month of August by Rs4.21 per unit.

The Nepra approved the request of K-Electric but determined that the tariff must be reduced by Rs4.87 per unit.

According to Nepra, the reduction in electricity price will not be applicable to lifeline customers of Electric.

Due to tariff reduction, K-electric consumers will get a relief of more than Rs7.21 billion, but the final decision will be announced by Nepra later.

According to Nepra officials, the cost of K Electric’s own power generation is Rs38 per unit, while the cost of power purchased by K-Electric is Rs13.61 per unit.

During the hearing, Chairman Nepra asked what K-Electric is doing to reduce the production cost of electricity. K-Electric officials replied that there is a program to increase production power generation using renewable energy sources and gas so that costs could be reduced.

The NEPRA chairman said that K-Electric was buying electricity at least Rs24 per unit cheaper than its own production cost and it should inform the regulator about its steps to increase its cheaper production.

Meanwhile, Nepra’s case officer said that the government is subsidizing the electricity tariffs by Rs15 per unit.