NVVN proposes higher rate for 80 MW

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    The new Indian nodal agency for trade of electricity with Nepal, (NVVN), has proposed a higher rate for the additional 80 MW delaying agreement with the Nepal Electricity Authority (NEA).

    The NVVN has proposed Rs 8.64 (IRs 5.40) per unit as commercial rate. This does not include leakage and wheeling charge for use of the transmission line, and the actual cost can rise up to Rs 10 including that. Leakage in electricity is 25 percent in Nepal. The NEA earlier was procuring from the Power Trading Corporation (PTC) Limited at Rs 5.50 (IRs 3.44) and is asking for the same rate. The NEA will import additional electricity through Mujaffarpur-Dhalkebar Transmission Line from February 16.

    Managing Director of NEA Mukesh Raj Kafle believes the rate should be determined by the two governments. “It seems there will not be any agreement through discussions between the NEA and NVVN. Government officials from the two countries must now determine it through negotiation,” he added. He revealed that Finance Minister Bishnu Prasad Poudel during his India visit also held discussions about procurement of electricity. He hoped that the rate will soon be determined as talks are being held at the government level, and claimed that it will be determined before Prime Minister KP Oli goes for India visit.

    He clarified that electricity cannot be procured from the PTC as India has fixed NVVN as the new nodal agency. He insisted that import of electricity will start from scheduled time as construction of 40-kilometer section of the transmission line from Bhitthamode to Dhalkebar on the Nepali side is almost complete. “The PTC has already procured up to 35 MW from Tanakpur at Rs 5 and we, therefore, are insisting that the same rate should be levied now. But the NVVN does not agree,” chief of the Power Trade Department at the NEA Prabal Adhikari said.

    The NEA is currently importing around 200 MW from Bihar and Uttar Pradesh as per the electricity exchange agreement between the two countries. The additional 80 MW is coming through special arrangements by the Indian government for its states and neighboring country, the Government of India Allocation Pool. The NEA is preparing to buy additional 80 MW only for six months.

    India has already declared to give 940 MW to Nepal for a few years to resolve energy crisis in Nepal by December, 2017. Nepal has not been able to import electricity even when India is willing to give due to delay in expansion of transmission lines.

    Source : Karobar daily