KATHMANDU: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said the government is preparing to introduce seasonal electricity tariffs and concessional rates for high-volume consumers to increase domestic consumption of surplus electricity generated during the rainy season.
Speaking at a discussion with representatives of the Morang Industry and Trade Association and the Morang Industry Organization in Biratnagar today, Minister Shrestha said the government is working to reform the electricity tariff structure so that increased power generation during the rainy season can be optimally utilized by industries and other sectors.
According to the minister’s secretariat, the government is working to make electricity tariffs more reasonable to reduce industrial production costs, increase electricity consumption and utilize surplus power within the country.
Shrestha said nine new substations are being added in the Sunsari-Morang area. Once operational, the substations are expected to make electricity supply in the region more reliable and sustainable.
The minister said electricity-related challenges faced by industrialists and businesspeople are a serious concern for the government. He said the government is committed to ensuring reliable and quality electricity supply to industries while adjusting tariffs to prevent unnecessary additional costs arising from electricity consumption.
Shrestha also said a system is needed to provide clear information on electricity capacity, transmission lines and supply infrastructure before a new industry is established. He said the Nepal Electricity Authority should regularly inform industrialists and businesspeople about available electricity capacity and infrastructure in different areas and establish a system to clearly communicate electricity availability before industries are set up.
According to Shrestha, the Authority is preparing to regularly inform industrialists and businesspeople about the amount of electricity available in different areas, plans for additional capacity expansion and when the infrastructure required to serve new industries will be ready.
During the discussion, industrialists and businesspeople said immediate reforms were needed in the electricity supply system to enhance the competitiveness of the industrial sector. They called for reliable and quality electricity supply, the early completion of the Barju and Keraun substations, and expansion of electricity infrastructure in the Katahari industrial area.
Industrialists also called for the removal of demand charges to encourage manufacturing industries. They said they were prepared to invest in facilities capable of consuming 5 to 50 megawatts of electricity if the necessary permits and infrastructure for domestic electricity consumption were provided.
Similarly, industrialists demanded that industries with paid-up capital of more than Rs. 1 billion be allowed to generate electricity for their own use. They also raised concerns about the quality and safety of electrical equipment and called for mandatory pre-testing of transformers and effective quality testing of conductors and cables.
Industrialists further demanded the removal of value-added tax (VAT) on electricity. They argued that reducing electricity tariffs and other related costs would lower production costs and enhance the competitiveness of Nepali industries. The discussion covered electricity supply, industrial infrastructure, tariff structures and measures to increase domestic electricity consumption.
Comment