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Government working to lower cost of electricity generation: Nawaz
* PM says efforts being made to change energy mix from thermal to other affordable sources g Reduction in petroleum prices next month will bring more relief to massesISLAMABAD: Prime Minister Nawaz Sharif said on Monday that the government was working towards lowering the price of electricity generation.
The prime minister made the announcement as the National Electric Power Regulatory Authority (NEPRA) on Monday approved reduction in power tariff by Rs 0.48 per unit. The Central Power Purchase Agency told a hearing at NEPRA that devaluation of dollar has caused a reduction in prices of furnace oil. NEPRA noted that it is providing direct relief to the consumers following the reduction in the cost of production. The regulator directed the distribution companies to pass on the benefit of reduced price of fuel used for power generation to consumers next month. The reduction in tariff was made on account of a monthly fuel price adjustment for October, which would not affect the lifeline consumers who use under 50 units per month because they are already subsidised, as well as all consumers of K-Electric, for whom tariff is determined separately.
The reduction was approved on a petition filed by CPPA on behalf of distribution companies on account of lower cost of power purchase and better energy mix as part of monthly fuel price adjustment (FPA). Under the fuel price mechanism approved by parliament, NEPRA is required to notify a reference fuel price for distribution companies at the start of every financial year and then pass on any change in average fuel cost, exchange rate variation and energy mix to consumers every month through the FPA. The reduced fuel cost is expected to provide a relief of about Rs 8.12 billion to consumers next month.
Prime Minister Nawaz Sharif “welcomed” NEPRA’s decision to cut down the electricity tariff. A press release issued here noted that on the directions of the prime minister, the Ministry of Water and Power had submitted details of fuel mix for slashing the tariff for the consumers and is following strict merit order for ensuring efficient fuel mix for lowering the cost of electricity generation. The government, it added, is also making connected efforts to change the energy mix from thermal to other affordable sources, including coal and hydropower to bring down the cost of electricity production.
The prime minister said that “practical steps taken by the government are showing results and its benefits are cascading to the masses”. online/staff report
Courtesy www.dailytimes.com.pk