ISLAMABAD, July 6: The National Electric Power Regulatory Authority has reduced the power tariff for Lahore and Multan regions, except for small residential consumers.

No tariff reduction has been given to domestic consumers using less than 300 units per month on the ground that they were already enjoying subsidy. The new tariff determinations have been sent to the water and power ministry and they will become effective after its notification by the government.

For the Lahore Electric Supply Company (Lesco), the tariff for domestic consumers using above 300 units per month has been reduced by 45 paisa per unit (kwh). The commercial tariff for Lesco has been reduced by Rs1.92 per unit and industrial and agricultural tariff has been brought down by Rs1.08 and 84 paisa per unit, respectively.

The residential tariff for the Multan Electric Power Company (Mepco) has been decreased by 41 paisa per unit. Its commercial tariff has been cut by Rs1.57 per unit and industrial and agricultural tariff by 68 paisa and 55 paisa per unit, respectively.

Nepra has so far reduced the tariff of five distribution companies of the Water and Power Development Authority. The government has not yet issued notifications to implement the determinations. The revision of tariff of the remaining three distribution companies is expected in a few days.

Tariff determination for the distribution companies will be the final step in the restructuring of Wapda, initiated in 1992. A Nepra announcement said the tariff had been determined in view of restructuring of Wapda power wing and incorporation of independent transmission and distribution companies.

Lesco and Mepco had requested Nepra to allow a distribution margin and pass through of power purchase costs in the shape of a multi-year tariff for five years, which was sufficient to maintain their financial health and provide reliable service to the consumers.

Nepra said incentives had been provided to reduce costs, particularly through the loss reduction programme, that would become a part of the companies' profit. Nepra found that the present rates resulted in a revenue accrual which was more than the prudent costs.