ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) reduced on Tuesday electricity tariff by Rs3.24 per unit for all distribution companies, except K-Electric, for one month to pass to consumers the impact of cheaper furnace oil and gas consumed for power generation in December 2014.

The decision was taken after a public hearing on a petition filed by Central Power Purchase Agency (CPPA) on behalf of the distribution companies. Lifeline consumers using less than 50 units a month will not benefit from the price cut because of their subsidised tariff.

Also read: Nepra approves reduction in K-Electric tariff

The public hearing, presided over by newly appointed Nepra chairman Tariq Sadozai, was attended by the four provincial members.

The total impact of lower fuel price adjustment is estimated at Rs21.6 billion for December. This includes Rs16.8 billion on account of reduction in furnace oil price and about Rs4.8 billion on account of better energy mix and lower than forecast gas price after the prime minister blocked a gas tariff increases allowed by the Oil and Gas Regulatory Authority (Ogra).

Originally, the hearing should have been held last month to let the benefit reach consumers in the billing month of Feb 2015, but was cancelled at the last moment, reportedly to facilitate successful completion of talks with the