Kathmandu. Chairman of the Electricity Regulatory Commission, Ram Prasad Dhital, has said that the transmission charges fixed under the open access can be reviewed as per the need.

Addressing the Friday Forum programme organized by Independent Power Producers’ Association, Nepal (IPPAN) here today, he said the current tariff determination method is a simple model adopted for the initial phase and more scientific method could be adopted in future based on the quantity of electricity flow, distance and the actual cost of the system.

He clarified that the rate of transmission charges could be adjusted as per the need as the open access objective was to increase competition in the electricity market and to provide cheap electricity to the consumers.

Chairman Dhital admitted that there was a need to clarify the basis and procedure of the 57 paisa per unit fee fixed for the use of the National Electricity Transmission Grid. He said that the Commission was ready to make further discussions with the stakeholders on the issue of tariff fixation and improve on the basis of the suggestions received.

“The commission has determined the transmission tariff on the basis of the audited financial statements of the Nepal Electricity Authority and the available data,” he said. He also said that there is a challenge in determining the actual cost of the transmission system as the generation, transmission, distribution and trade of the NEA are operating in an integrated manner.

He said that preparations are being made to fix the tariff based on megawatt and kilometer for the radial transmission line where one-way electricity is flowing. He said that the open access will provide an opportunity for the private sector to enter the electricity business and it will help in reducing the price of electricity from the competitive market.

He said that the Commission was positive to make necessary legal arrangements for electricity trade to the private sector and to expand the opportunities that are possible within the existing legal provisions. He also stressed on the need to increase the participation of the private sector in the construction of broadcasting infrastructure. Stating that the contribution of the private sector in the hydropower sector is significant, he said that now it is necessary to expand the opportunities for investment and participation in broadcasting and electricity trade.

Discussing the damage caused to hydropower projects by natural disasters including the Bhotekoshi floods, Chairman Dhital said that a regulatory framework is necessary for the construction of disaster-resilient infrastructure and economic rehabilitation after the damage. He said that the Commission is studying the classification of the project on the basis of risk, insurance, relief fund and the duration of the Power Purchase Agreement (PPA) and other options for the management of the damage.