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National Electric Power Regulatory Authority (Nepra) has approved a reduction of Rs 1 to Rs 3.8 per unit in the tariffs of three power distribution companies under the monthly fuel adjustment formula. The authority has rejected the proposals of passing on the burden of mark-up and loans received for the power sector to consumers. Nepra has decided not to review power tariff for the lifeline consumers of the Islamabad Electric Supply Company (Iesco) and maintained it at Rs 4 per unit.
The authority has reduced power tariff by Rs 1.5 per unit for the consumers using up to 300 units per month while for the consumers using 301 to 700 units per month tariff has been reduced by Rs 2 per unit; and for the consumers using over 700 units per month a reduction of Rs 2.5 per unit has been approved. Nepra has also approved a reduction of Rs 2.5 per unit for peak hour and off-peak hour consumers.
A reduction of Rs 3 per unit for commercial consumers, Rs 2.5 per unit for industrial consumers and Rs 2.5 per unit for farm consumers has also been approved. Iesco is likely to generate Rs 88.92 billion during 2014-15 from sale of 8.2 billion units of electricity.
For Faisalabad Electricity Supply Company (Fesco), the authority has maintained power tariff for lifeline consumers at Rs 4 per unit, reduced tariff by Rs 2 per unit for users consuming up to 100 units, reduced tariff by Rs 3.8 per unit for users consuming 101 to 300 units per month, a reduction of Rs 1 per unit for users with monthly power consumption of 301 units to 700 units approved and for those consumers with monthly power consumption over 700 units a reduction of Rs 1.4 per unit has been made.
Nepra has approved a reduction of Rs 2.5 per unit for peak-hour, off-peak hour consumers, commercial consumers, industrial consumers and farm sector. Fesco will generate Rs 107.44 billion revenue during 2014-15 by selling 9.9 billion units of electricity. The authority has maintained power tariff for lifeline consumers of Peshawar Electricity Supply Company (Pesco) at Rs 4 per unit, reduced power tariff by Rs 0.50 per unit for consumers consuming up to 100 units per month. For users consuming 101 to 300 units Rs 0.26 power tariff reduction has been approved. A reduction of Rs 0.5 per unit for users consuming 301 to 700 units, while no change in power tariff for users of over 700 units per month has been made by the authority for Pesco.
Power tariff of commercial consumers of Pesco has been reduced by Rs 0.50 per unit, industrial and agricultural consumers' tariff has been reduced by Rs 1 per unit. The company will generate Rs 123.74 billion revenue in 2014-15 by selling 8.4 billion units of electricity. The authority has approved 2 percent additional line losses for Pesco owing to poor law and order situation in the domain of Pesco.

Copyright Business Recorder, 2015

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