Kathmandu: The Ministry of Energy, Water Resources and Irrigation has stepped up preparations to reduce electricity tariffs. With power generation increasing during the monsoon and the possibility of electricity being wasted due to surplus production, preparations are underway to provide electricity to consumers and industries at concessional rates to boost domestic consumption.
On the proposal of Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha, a committee was formed on July 29, to review electricity tariff rates. The Nepal Electricity Authority (NEA) has begun studying and discussing ways to reduce tariffs through the committee.
The committee, coordinated by NEA Board Member Anshukiran Shahi, is scheduled to meet today. The meeting, to be held at the Ministry of Energy at 4 p.m., will discuss the review of electricity tariffs and measures to reduce them.
The committee includes representatives from the Ministry of Energy, the Federation of Nepalese Chambers of Commerce and Industry, energy experts, and consumer and financial experts.
According to committee coordinator Shahi, electricity generation exceeds domestic consumption during the monsoon as production increases. Since the NEA faces monthly losses when generated electricity goes to waste, the tariff is being reviewed with the objective of increasing consumption.
For this purpose, discussions are underway on introducing a “seasonal tariff,” under which electricity rates would vary according to the season. The NEA plans to lower electricity tariffs during the monsoon to increase power consumption among household consumers and industries.
“Discussions have been held on how industries can also pass on benefits to consumers when the seasonal tariff is cheaper during the monsoon,” coordinator Shahi said. “A meeting is being held at the ministry today to determine how tariffs can be reduced through the seasonal tariff. We will make a decision soon.”
The NEA is also preparing to provide electricity to industries at concessional rates during the monsoon. Shahi said discussions are also underway on passing the benefits of lower electricity costs on to consumers through reduced prices of goods and services.
According to him, coordination is necessary to ensure that providing cheaper electricity to industries reduces their production costs and that consumers ultimately benefit from the lower costs.
The government aims to increase domestic consumption of electricity that would otherwise be wasted during the monsoon by reducing tariffs, while also lowering the production costs of industries. A decision on tariff revision is expected to be made soon based on the committee’s recommendations.
Jalasarokar