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NEA preparing to adjust electricity tariff

Kathmandu. Nepal Electricity Authority (NEA) has initiated a review process to make the electricity tariff structure more timely. The NEA Board of Directors has decided to form a committee with the objective of optimum utilization of electricity, expansion of internal electricity consumption and developing consumer-friendly tariff system.

A meeting of NEA’s Board of Directors on Wednesday decided to conduct a comprehensive review of the existing tariff structure and prepare a new proposal with a deadline of 15 days.TAG_OPEN_div_22 The process will be forwarded to the Electricity Regulatory Commission to determine the new tariff on the basis of the report prepared by the committee.

Anshu Kiran Shahi, a member of the board of directors of NEA, said that the policy was necessary to increase the domestic consumption as the hydropower generation has been increasing significantly in recent years and the power generated during the rainy season has not been fully consumed.TAG_OPEN_div_20 He said that preparations have been made to reform the tariff structure targeting the domestic and industrial sectors.

The NEA has a target to provide additional subsidies to the domestic consumers and to provide electricity at a suitable and easy rate to the productive industries that consume high energy.TAG_OPEN_div_18 This is expected to reduce the monthly electricity cost of the consumers and reduce the production cost of the industry.

A committee has been formed under the convenorship of Shahi, a member of the Board of Directors, to review the tariff.TAG_OPEN_div_16 The committee comprises representatives of Ministry of Energy, Water Resources and Irrigation, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), experts from the energy and power sectors, consumer representatives and Deputy Executive Director of Nepal Electricity Authority’s Directorate of Distribution and Customer Service.

Similarly, the Board of Directors has formed a separate investigation committee to look into the complaints and complaints related to the past procurement process and ongoing projects.TAG_OPEN_div_14 The NEA will have three experts related to technical, legal and public procurement under the leadership of member Shambhu KC and the Deputy Executive Director designated by NEA will be the member-secretary.

{{TAG_OPEN_div_12} The probe committee has been given the responsibility to study the past procurement process, operation project and complaints received and submit a report with suggestions for improvement within two months.

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