The commission will facilitate electricity generation, transmission, trade
KATHMANDU, March 29: The government is forming an independent commission to facilitate electricity generation, transmission and trade, as well as regulate the overall electricity sector.
Minister for Energy Janardan Sharma registered Electricity Regulatory Commission Bill 2017 at the parliament secretariat on Tuesday, which will pave way for the formation of the commission.
The five-member commission will also make the energy sector more transparent and also work to balance energy demand and supply in the country as well as monitor electricity tariff rates and protect rights of electricity consumers. Similarly, making electricity market competitive and ensuring smooth electricity supply are the other objectives of the commission.
The cabinet had approved the bill last week.
According to the bill, the commission will have a chairman and four members. Government secretaries or individuals with postgraduate degree in economics, commerce, management, accounts, law or engineering along with work experience of 20 years are eligible for the post of chairman.
A three-member team led by energy secretary will select the members and recommend the names to the government. According to the bill, the appointments will be made, respecting the principles of inclusion.
“Though the commission may need some government resources in the initial years, it will be self-sufficient,” the bill says.
The commission will mobilize resources by collecting a maximum of one percent of the total annual income of distribution company as well as firms or individuals holding license for electricity trading.
Likewise, the commission will also levy a maximum of one percent on annual income of energy exporting company.
The commission will also fix the Power Purchase Agreement (PPA) for producers or suppliers and buyers until there is a wholesale market for electricity trading.
The bill will be tabled in the parliament’s ongoing session soon, according to the energy ministry officials.
Source: My Republica