Kathmandu: The Electricity Regulatory Commission (ERC) has determined the transmission charges for using the national electricity transmission grid operated by the Nepal Electricity Authority (NEA). For fiscal year 2026/27, the commission has set the transmission charge at Rs 413,000 per MW per month for medium- and long-term open access, and 57 paisa per kilowatt-hour for short-term open access.
The commission said it has issued the National Electricity Transmission Grid (National Transmission Grid) Transmission Charge Calculation Standard, 2026 to determine the charges for using the transmission system under the national transmission grid. The standard came into effect on September 16, 2026.
The standard was issued pursuant to Section 13 of the Electricity Regulatory Commission Act, 2017, and Rule 13 of the Electricity Regulatory Commission Regulations, 2018, as well as Section 33 of the Directive on Open Access to Electricity Transmission and Distribution Systems, 2025.
The standard sets out the methodology for calculating transmission charges for the national transmission grid, as well as the basis for various expenses and returns to be included in the annual revenue requirement. According to the commission, the annual revenue requirement will take into account depreciation, interest on loans, employee and operating expenses, costs related to transmission services, returns on equity investment, foreign exchange-related expenses, income tax and other relevant costs.
The commission said the transmission charges have been determined with the objective of ensuring the full and fair recovery of the annual revenue requirement of the authorized entity for using the transmission system. The standard allows charges to be determined based on installed capacity, i.e. per megawatt, or the volume of electricity transmitted, i.e. per kilowatt-hour, depending on the capacity and energy flow through the transmission system.
For determining the charges for fiscal year 2026/27, the commission said it used NEA’s audited financial statements for fiscal year 2024/25, along with the annual revenue requirement estimates submitted by the authority for fiscal years 2025/26 and 2026/27.
Accordingly, the charge for medium- and long-term open access has been set at Rs 413,000 per MW per month, which amounts to Rs 4.956 million per MW annually. Similarly, the charge for short-term open access has been fixed at 57 paisa per kilowatt-hour.
The provision will be significant for electricity producers, traders and other authorized users accessing the national transmission grid on an open-access basis. The standard provides greater certainty in determining the cost of using the transmission system by establishing a clear basis for calculating open-access charges.
However, the decision does not cover charges for radial and dedicated transmission facilities outside the national transmission grid. The commission said it is proceeding with the process of issuing a separate directive to determine transmission charges for such facilities.
According to the commission, the full text of the National Electricity Transmission Grid (National Transmission Grid) Transmission Charge Calculation Standard, 2026/2027 is available on its website.
Jalasarokar
