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Rs2 per unit cut in electricity tariff likely as Nepra reduces 74 paisa/unit for K-Electric

Rs2 per unit cut in electricity tariff likely as Nepra reduces 74 paisa/unit for K-Electric

ISLAMABAD: The federal government has decided to reduce huge power tariff and is likely to decrease Rs2 per unit, while National Electric Power Regulatory Authority (Nepra) has already approved a 74 paisa per unit cut for K-Electric on account of monthly fuel adjustment.

Sources said that Prime Minister’s Adviser Sartaj Aziz is working on the restructuring of slabs, including adding two new slabs of 300-500 and 500-700 on the direction of PM Nawaz Sharif.

In June and afterwards public received access bills, reportedly, due to reduction in subsidy slabs on the directions of IMF. However, Minister for Water and Power Khawaja Asif has been insisting that not subsidy withdrawal but 35 days billing cycle due to Eid holidays was actually the reason behind the access bills.

The K-Electric‘s fuel cost declined by Rs1.05 billion in October because of reduction in oil prices and it sold out about 1.4 billion units of electricity. Nepra was informed that the price of furnace oil had declined from Rs68,000 to Rs65,000 per ton.

The fuel cost variation of K-electric own generation was Rs894.749 million, while from external generation sources the difference was Rs152.349m, hence the total variation for the month of October was Rs1047.098 million.