Government Prepares Seasonal Electricity Tariffs to Boost Domestic Consumption

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Biratnagar: Energy, Water Resources and Irrigation Minister Biraj bhakta Shrestha said preparations are underway to introduce seasonal electricity tariffs and concessional electricity rates for high-consumption customers to increase domestic consumption of surplus electricity generated during the monsoon season.

Speaking at a discussion with representatives of the Morang Industry and Trade Association and the Morang Chamber of Industries in Biratnagar, Minister Shrestha said the government is focused on making necessary reforms to the tariff structure so that increased electricity generation during the monsoon can be utilized to the maximum in industries and other sectors.

He said the government is working to make electricity tariffs more practical with the aim of reducing industrial production costs, increasing electricity consumption, and utilizing surplus electricity available in the system within the country.

Nine Substations Being Added in Sunsari-Morang

According to Minister Shrestha, nine new substations are under construction in the Sunsari-Morang area. He said electricity supply in the region is expected to become more reliable and sustainable once the substations come into operation.

Stating that electricity-related problems faced by industrialists and businesspeople are a serious concern for the government, he said the government is committed to ensuring a continuous and quality power supply to industries and adjusting tariffs so that electricity use does not impose an unnecessary additional burden.

He said there needs to be a system that provides clear information about the availability of electricity capacity, transmission lines and supply infrastructure before an industry is established.

Minister Shrestha said the Nepal Electricity Authority (NEA) should regularly inform industrialists and businesspeople about available electricity capacity and infrastructure in different areas and develop a system to clearly communicate electricity availability before new industries are established.

He said the NEA is preparing to maintain regular dialogue with industrialists and businesspeople in the coming days and provide information on how much electricity is available in each area, the status of additional capacity expansion, and when the infrastructure required for new industries is expected to be completed.

Industrialists Demand Reduction in Electricity Tariffs

During the discussion, industrialists and businesspeople said immediate improvements to the electricity supply system were necessary to enhance the competitiveness of the industrial sector.

They called for a reliable and quality electricity supply, the speedy completion of the Barju and Keroun substations, and the expansion of electricity infrastructure in the Katahari industrial area.

They also demanded the removal of demand charges to promote manufacturing industries. They said they were ready to invest in operations capable of consuming between 5 MW and 50 MW if the necessary approvals and infrastructure for domestic electricity consumption were guaranteed.

Likewise, they demanded that industries with paid-up capital of more than Rs 1 billion be allowed to generate electricity for their own use.

Industrialists also raised concerns about the quality and safety of electrical equipment. They called for mandatory pre-testing of transformers and more effective quality testing of conductors and cables.

They also demanded the removal of value-added tax (VAT) imposed on electricity. They said reducing electricity tariffs and other costs would lower production costs and enhance the competitiveness of Nepali industries.

The discussion was attended by Morang Chamber of Industries President Nandkishor Rathi, Morang Industry and Trade Association President Anubhav Rathi, and industrialists and businesspeople from the Morang-Sunsari area. The participants held detailed discussions on electricity supply, industrial infrastructure, tariff structures, and ways to increase domestic electricity consumption.

Jalasarokar