The National Electric Power Regulatory Authority (NEPRA) on Thursday approved dropping the power Tariff for K-electric consumers by Rs4.87 per unit.

The tariff reduction, made in the fuel adjustment charges, would relieve K-electric consumers of Rs7 billion. The reduction would not apply to lifeline consumers of KE.

NEPRA has not issued a detailed announcement as of now.

However, Chairman NEPRA has said that K-Electric’s production and CPPA’s numbers do not match. 

Chairman NEPRA said that the government is bearing a loss of Rs15 per unit, which the consumer ultimately pays.

However, the Central Power Purchasing Agency (CPPA) recommended that NEPRA raise the power tariff by Rs0.22 per unit in fuel adjustment charges for August.

According to the application by CPPA, hydraulic power plants produced 38.10% of electricity in August, while 15.39% from coal. Furnace oil generated 7.27% of electricity, 12.49% by RLNG, 13.34% by Nuclear power plants, and 9.36% by using local gas.

The per unit price of coal-produced electricity was Rs20.54, furnace oil Rs35.61, local gas Rs10.49 and power produced using RLNG cost Rs24.72 per unit.

Multiple power sources cumulatively produced a total of 13.638 billion units of electricity in August, the CPPO application read. The average production cost for August was Rs10.11 per unit, and the reference fuel cost was Rs9.89.

The CPPA advised NEPRA to raise the fuel tariff by Rs0.22, considering the fluctuation of fuel prices in the international market.