Sunday Nov 27, 2022
Sunday Nov 27, 2022

ERC cuts tariffs to promote more use of surplus power

2021 Oct 28, 13:35, Kathmandu
This undated image shows the office of Nepal Electricity Authority in Ratnapark, Kathmandu.

Electricity Regulatory Commission are encouraging consumption of more power by cutting electricity tariffs by 2.84 percent on average, as Nepal is generating a surplus of hydropower.

The Electricity Regulatory Commission has waived energy charges for households that consume less than 20 units per month, though they have to pay a minimum service charge of 30 Nepali rupees (24 U.S. cents) each month.

For households consuming 150 to 250 units per month, the rate is cut by half a rupee per unit to 9.5 rupees. Reduced tariffs are offered as well for industries using more power, and the new measures come into effect on Nov. 17 for a year, the commission said on Wednesday.

"We have lowered the tariffs to promote the use of electric ovens at homes, promote electric vehicles, and increasing use of electrical facilities for irrigating the farmlands," Dilli Bahadur Singh, chairperson of the commission, told the press, noting the rate for powering irrigation facilities is to be cut by 40.69 percent.

Most households in Nepal's urban areas are using gas to cook food.

According to Nepal Electricity Authority (NEA), the country currently has an installed capacity of some 2,000 megawatts (MW), but the nationwide peak-hour demand was just over 1,500 MW on Wednesday. In other times, demand for electricity drops to below 1,300 MW.

Nepal's proposal of selling surplus energy to India has not been accepted yet, said Suresh Bahadur Bhattarai, the NEA's spokesperson. 


Nepal Electricity Authority Electricity Regulatory Commission Electricity Tariffs hydropower Surplus electric vehicles Gas Surplus Energy NEA Spokesperson Irrigation Facilities
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