As the Commerce Commission now prepares to undertake phase two of the electricity alignment, the Chairman has indicated that once the Nadarivatu dam comes on line, there could be reduction in the current tariffs.
Dr. Mahendra Reddy said once Nadarivatu starts generating electricity, FEA's use of diesel generators would decrease and would enable them to re-look at the current tariffs.
After the realignment, the current FEA tariff stands at 34.84 cents per unit for high end domestic consumers and 17 cents per unit for low end domestic consumers, while the tariff for commercial and industrial entities stands at between 34 to 39 cents per unit from the previous average unit cost of 25.5 cents per unit.
These tariffs will be reviewed in October this year.
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Nadarivatu Dam could lower current tariffs