ISLAMABAD: The regulatory body for power producers and distributors has announced a reduction of Rs1.70 per unit in electricity tariffs for July 2017, taking cue from cheaper fuel prices in the international market.
Following the tariff cut, electricity bills of consumers for September 2017 will reflect fuel price adjustment charges. Overall, power producers will refund around Rs20 billion to the consumers.
However, K-Electric and agricultural consumers as well as domestic consumers that use less than 300 units of electricity per month will not enjoy the relief.
The National Electric Power Regulatory Authority (Nepra) took the tariff cut decision during the monthly public hearing on Wednesday following a petition filed by the Central Power Purchasing Agency (CPPA), which sought a reduction of Rs1.7090 per unit.
According to Nepra, the fuel cost of electricity delivered to the distribution companies was calculated at Rs4.78 per unit in July against the reference price of Rs6.49 per unit, which suggested that the consumers were entitled to a refund of Rs1.70 per unit.
As the power distribution companies had recovered an extra Rs20 billion through electricity bills for July, these would be refunded to the consumers in September bills.
Total energy generation in the country from all sources stood at 12,496.63 gigawatt-hours (GWh) in July at a cost of Rs58.65 billion.