The National Electric Power Regulatory Authority (Nepra) has approved cutting the power tariff by Rs9.97 per unit for K-electric customers.

The national power regulator earlier today announced to cut the power tariff by Rs2.15 per unit on account of fuel cost adjustments (FCAs) for the month of October and by Rs.7.83 per unit on account of quarterly adjustment.

The relief comes after K-Electric sought a price cut in two applications.

According to the spokesperson of the power utility, the impact of quarterly adjustments is usually not passed to consumers under the uniform tariff policy applicable across the country. However, he added, the final decision rests with the Federal Ministry of Energy, the federal government, and the Nepra Authority.

FCA is dependent on the global prices of fuel and is passed on to consumer bills under the prescribed rules and regulations of NEPRA and the Government of Pakistan. The negative FCA for October 2022 is primarily due to a decrease in prices of RLNG, Furnace Oil, and power purchased from CPPA-G. The price of RLNG in October 2022 decreased by 16% from September 2022.

The price of Furnace Oil in October 2022 has decreased by 6% from September 2022, and the price of power purchased from CPPA-G in October 2022 has decreased by 6% from September 2022.

The reduction in power tariff will bring a relief of Rs3.59 billion to consumers of the port city.

Nepra has yet to issue a detailed decision in this regard.