KATHMANDU: The government has intensified preparations to reduce electricity tariffs for consumers and industries.
A committee was formed on July 29 on the proposal of Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha to review electricity tariffs. The Nepal Electricity Authority (NEA) has since been working on a plan to provide electricity to consumers and industries at concessional rates.
A meeting of the committee, coordinated by NEA Board of Directors member Anshu Kiran Shahi, is being held at the ministry today. The committee includes representatives from the Ministry of Energy, the Federation of Nepalese Chambers of Commerce and Industry, energy experts, consumer representatives and finance experts.
The meeting, scheduled for 4 pm at the ministry, will discuss ways to reduce electricity tariffs. Coordinator Shahi said the tariff is being reviewed to increase domestic electricity consumption, particularly as surplus electricity generated during the rainy season is currently being wasted.
Shahi said the NEA has been incurring monthly losses due to surplus electricity during the rainy season and that consumption could be increased by introducing a concessional “seasonal tariff” for consumers and industries.
According to Shahi, preparations are also underway to provide tariff concessions to industries. Discussions are being held on how much cheaper electricity can be supplied to consumers by offering industries lower tariffs during the rainy season.
“We have also discussed how industries can provide concessions to consumers in their production when the seasonal tariff is cheaper during the rainy season. We will make a decision soon,” Shahi said.
The Ministry of Energy has been exploring ways to provide tariff relief to consumers amid criticism over increases in electricity-related charges. As part of the effort, the ministry has formed the committee and begun reviewing options for reducing electricity costs.
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