ISLAMABAD Aug.19 (TNS): Power tariff for all distribution companies, except K-Electric, is estimated to come down by Rs1.71 per unit for a month due to lower than assumed fuel costs in July.
The CPPA-G, Central Power PurÂchasing Agency-Guarantee, has filed a petition before the National Electric Power Regulatory Authority (Nepra) for a tariff cut on behalf of ex-Wapda distribution companies. The regulator is expected to hold a public hearing on the matter on Aug 23.
According to the practice in vogue, the distribution companies charge power consumers significantly higher estimated fuel cost, which is later adjusted against actual cost in a subsequent month. The practice helps power companies generate billions of rupees from consumers in advance and have better cash flows without financing costs.
Power tariff relief will not apply to agricultural consumers and residential consumers with less than 300 units of monthly consumption under a decision made by the PML-N government on the grounds that these categories are already being provided subsidized electricity and hence do not qualify for monthly fuel price cut.
The CPPA-G reported in its petition that it had charged consumers a reference tariff of Rs6.49 per unit in July when actual fuel cost turned out to be Rs4.78. Therefore, there is a legal requirement to return Rs1.71 per unit to consumers.
