24 January 2004	Saturday	01 Zilhaj 1424

ISLAMABAD, Jan 23: The National Electric Power Regulatory Authority (Nepra) is unlikely to reduce power tariff for Wapda consumers under the automatic fuel adjustment formula, Dawn has learnt.

A Nepra member told Dawn on Friday that Nepra has decided in principle to maintain a status quo on Wapda tariff for the current quarter and not to announce its determination, therefore the tariff would remain unchanged.

A final decision to this effect, said the member, would be taken on Monday at a meeting to be presided over by the chairman Nepra and attended by the officials of the ministries of water and power, finance and Wapda.

He said that Wapda's fuel bill during the last quarter (September-December) has reduced but this has been off-set by increase in overall expenditure on account of higher power purchases from independent power producers (IPPs) owing to winter season and additional expenditure on account of loan repayments.

The member said Wapda has now started repayments of Ghazi Barotha Hydropower Project loan programme and reduction in fuel bill has been overtaken by this additional payment.

The Nepra had reduced tariff for the consumers of Karachi Electric Supply Corporation (KESC) by an average of 8.74 paisa per unit under the quarterly fuel adjustment formula and it was believed that the Wapda consumers would also get some relief.

The Kesc rates for commercial consumers had come down by 12 paisa per unit, followed by 10 paisa per unit reduction for bulk consumers and five paisa per unit for residential consumers.

In October last year, the Nepra had reduced Wapda tariff for residential, AJK and agricultural consumers by 4.42 paisa per unit. Similarly, the tariff for commercial, industrial and bulk consumers was brought down by 11.04 paisa per unit.

Under the automatic fuel adjustment formula, the Nepra is required to revise power tariff for all consumers on quarterly basis to pass on any fluctuation in international furnace oil price to the consumers.