Power tariff reduced by Rs 3.24 per unit

[Kabira]

ISLAMABAD - The National Electric Power Regulatory Authority (NEPRA) on Thursday issued a notification regarding reduction in power tariff by Rs 3.24 per unit under the monthly fuel adjustment plan.

The electricity price has been decreased for December, 2014 and relief would be provided to the consumers in March bills. According to Nepra, the new tariff will not be applicable on lifeline, agricultural and K-electric consumers.

Power tariff reduced by Rs 3.24 per unit

Excellent job.

 

[Gufi]

Excellent job.

excellent job will be when the prices of every day goods decrease because of decreased production costs and transportation costs. The control of prices is the job of the government and they should make sure the prices of products decrease proportionally because as soon as petrol goes back up the companies will increase prices again quoting higher costs

 

[SBD-3]

excellent job will be when the prices of every day goods decrease because of decreased production costs and transportation costs. The control of prices is the job of the government and they should make sure the prices of products decrease proportionally because as soon as petrol goes back up the companies will increase prices again quoting higher costs

That is what we call Inflation pass through. Price control is a good tool for inflation control but the price differences dont necessarily means the same or less prices everywhere. For example, you cant expect to find a cheaper milk, dairy products, vegetables and food items. It is because Karachi, for example, produces only a small quantity and rest flow in from up country. Plus the high population pressure also restricts deflationary trends in prices. So price control is a good thing but price regulation is a complex phenomenon.

 

[Gufi]

So price control is a good thing but price regulation is a complex phenomenon.

I agree with you to a certain extent... But the issue here is one of the main reasons quoted for price hikes was increased cost of production. With the decrease in cost of production there has to be a proportionate decrease in prices.... The demand and supply is one side of setting up prices. The other is production cost. If there is a decrease in production and transportation costs it should pass down also.

It is because Karachi, for example, produces only a small quantity and rest flow in from up country.

Moving products up country has decreased and so has the production costs in harvesting etc so there should be a decrease

 

[Donatello]

A unit is KWh?