Nepal Electricity Authority Reviews Tariff Structure

The Nepal Electricity Authority (NEA) has initiated a review of the country’s electricity tariff structure to make it more timely and user-friendly.

The NEA’s board of directors has formed a committee to review the current tariff structure and prepare a new proposal within 15 days. The committee will submit its report to the Electricity Regulatory Commission to proceed with the new tariff determination.

Background

According to Anshu Kiran Shai, a member of the NEA’s board of directors, the country’s hydropower production has increased significantly in recent years, especially during the monsoon season. However, the power generated during this time cannot be fully consumed, highlighting the need for a policy to increase internal consumption.

In this context, the NEA aims to improve the tariff structure by targeting the household and industrial sectors. The authority plans to provide additional facilities to household consumers and offer suitable rates to production-based industries.

This move is expected to reduce monthly electricity costs for consumers and decrease production costs for industries.

Committee Formation

The committee formed to review the tariff structure will be led by Anshu Kiran Shai and comprise representatives from the Ministry of Energy, the Federation of Nepalese Chambers of Commerce and Industry, energy and finance experts, consumer representatives, and the NEA’s Distribution and Customer Service Directorate.

Another committee has been formed to investigate complaints and grievances related to past procurement processes and project operations. This committee will be led by Shambhu Kesi and comprise three experts in technical, legal, and public procurement matters, as well as a member-secretary from the NEA.

The investigation committee has been tasked with submitting a report with suggestions for improvement within two months.