Jan 7, 2016- The Electricity Tariff Fixation Commission (ETFC) is likely to increase electricity tariff by 18 percent. With ballooning losses, the Nepal Electricity Authority (NEA) has been demanding a hike in the electricity tariff, which was adjusted three years ago.
“We have concluded the study and are likely to increase the tariff by 18 percent,” Jagat Kumar Bhusal, chairman of ETFC said at the meeting of Public Accounts Committee on Thursday. “However, the decision needs to be approved by at least four of the six commission members.”
According to Bhusal, the decision regarding electricity tariff adjustment is likely to be announced within coming two months. “Since the current scenario, with blockade and sever power outage in place, is adverse, we are taking some time to make this decision,” Bhusal said.
In June 2012, the ETFC had raised the tariff by 20 percent for the first time in 11 years. Stating that the increase was not sufficient to reduce its losses significantly, the state-owned electric utility had ramped up the tariff right after the previous hike in 2012.
Meanwhile, the ETFC is also working on a long-term mechanism under which the power tariff would go up by 5 percent annually. Under the mechanism, the ETFC is planning to charge different rates according to the season (dry and wet), from the next fiscal year.
The ETFC has been working on a formula which will forecast the price for the particular fiscal year depending on factors like consumer price index, inflation, industrial productivity, PPA with independent power producers, impact on power consumers and the exchange rate of the US dollar.
Source : eKantipur