ISLAMABAD, Jan 6: The National Electric Power Regulatory Authority has reduced power tariff for the consumers of the Karachi Electric Supply Company by an average 5.5 paisa per unit.

A Nepra announcement said here on Monday that the reduction shall result in a comparable variation in the bills of KESC and Wapda consumers because KESC tariff was not increased in October 2002 under the quarterly tariff adjustment mechanism.

On a sectoral basis, the tariff for commercial and industrial consumers has been reduced by six paisa per unit and five paisa for domestic consumers using more than 50 units per month and all other consumers.

The tariff of residential consumers consuming up to 50 units per month as being lifeline consumer class has remained unchanged since the last four years and no adjustment has been made in the rates of this class of consumers.

The tariff reduction, said Nepra, was result of a quarterly review under which the KESC has to be compensated for variation in fuel price and cost of power purchase.

The tariff adjustment took into account variation in furnace oil prices from Rs12,532 per ton on Nov 2, 2002 to Jan 2, 2003 plus reduction in dollar rate from Rs60 to Rs58. The fuel bills and cost of power purchased from IPPs and other sources have decreased as compared to September 2002.

Nepra said that Wapda distribution companies were allowed a 6.5 paisa per unit increase in tariff in September as a result of fuel price increase but that increase was not allowed to the KESC. “If a similar increase had been allowed to the KESC at the beginning of October 2002, the total relief of tariff in this quarter would have resulted in approximately 12 paisa per unit.

Meanwhile, the government has not yet notified the tariff reduction of 12 to 19 paisa per unit approved by Nepra on Dec 17, 2002 for Wapda distribution companies, an official at the water and power ministry told confirmed.

The federal government is bound under the Nepra ordinance 1997 to notify Nepra determination within 15 days or request Nepra for review in case it has any objections.

So far neither the notification has been issued nor the determination has been returned to the Nepra which means the Wapda consumers running into over 12 million would continue to pay the higher rates applicable in September-December 2002. The ministry did not offer any reason for the delay.