Kathmandu – With the objective of ensuring non-discriminatory open access in the electricity system, the Electricity Regulatory Commission has issued the “Directive on Open Access in the Electricity Transmission and Distribution System, 2025.”
The Commission issued the directive on January 9 2026, pursuant to Section 14 (na) of the Electricity Regulatory Commission Act, 2017, and based on the policy framework of the “General Network Access Framework” issued by the Ministry of Energy, Water Resources and Irrigation.
Who can obtain open access?
According to the directive, projects connected at a voltage level of 33 kV or above with a capacity of 5 MW or more, captive power projects with a minimum capacity of 1 MW, as well as industrial and commercial consumers using 5 MW or more of electricity, are eligible to obtain open access services.
In the case of cross-border electricity trade, a minimum capacity of 10 MW is clearly required.
After achieving open access, the relevant entity will have the legal right to use the transmission or distribution system without discrimination, subject to the guidelines. The long, medium and short-term open access guidelines divide open access into three categories: Long-Term Open Access: More than 5 years or for the duration specified in the electricity purchase agreement.
Long-term open access: More than 5 years or until the period specified in the power purchase agreement
Medium-term open access: More than 1 year to 5 years
Short-term open access: Up to 1 year (for a minimum of 24 hours)
In terms of priority, long-term open access is given first priority, while short-term open access is given third priority.
Nodal Agency and Fee Structure
The Department of Electricity System Operation of the Nepal Electricity Authority has been designated as the nodal agency for receiving, evaluating, and approving open access applications (unless the government specifies otherwise).
Open access users are required to pay nine types of fees according to their category, which include:
- Transmission Fee
- Wheeling Fee
- Deviation Settlement Fee
- Cross-Subsidy Fee
- Additional Surcharge
- Standby Fee
- Reactive Energy Fee
- Scheduling Fee
- Operation Fee
Not all fees apply to every user. The Commission may revise the fee rates from time to time. In the case of long-term open access, it is mentioned that the open access user may also be required to contribute to the cost of system upgrades and reinforcement.
Procedures, Agreements, and Grievance Resolution
For the effective implementation of the directive, the nodal agency is required to prepare detailed procedures, develop sample documents for open access agreements, and make necessary arrangements for the metering system.
If there is a grievance related to open access, it will be heard through the Grievance Resolution Committee, and if the party is not satisfied with the outcome, they can submit an application to the Commission for dispute resolution, as provided in the directive.
Open access as a ‘milestone’
The directive defines open access not merely as an administrative arrangement, but as a historic cornerstone for Nepal’s electricity sector. It is expected to pave the way for private sector entry into transmission and distribution infrastructure, provide commercial clarity for investments, and create an environment where producers can directly seek markets and sell electricity themselves.
The Commission concludes that it will increase the utilization efficiency of the transmission infrastructure, provide a regulatory framework for the private sector to trade electricity in both domestic and international markets, and help develop a competitive system in the long term where consumers can choose their electricity suppliers.
Towards Solving Market Challenges
Amid growing concerns that projects are unable to progress and electricity development is being hindered due to various challenges in electricity buying and selling, the open access system is expected to provide an alternative route to connect production with the market. The Commission believes that promoters will no longer have to rely solely on electricity purchase agreements with the Nepal Electricity Authority.
The Commission has also expressed its commitment to issue additional directives over time for the successful implementation of open access and to address and amend existing shortcomings.
Jalasarokar
