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NEA Proposes ETFC to Hike Electricity Tariff

Nepal Electricity Authority(NEA) is looking to hike the electricity tariff to minimize its losses, reports The Himalayan Times.

NEA has made a proposal to the Electricity Tariff Fixation Commission (ETFC) to hike the electricity tariff. This proposal has been approved and forwarded to the commission.

NEA has been facing losses as the rate at which it purchases power is higher compared to the rate at which it sells. NEA made the proposal to hike the tariff in accordance with its Financial Restructuring Plan, which was issued last fiscal year to transform the NEA into a profit-generating entity.

According to NEA, the tariff for household users are:

NEA tarrif hike
This tariff is based on consumption for the users. According to the NEA, this revision will cover its current losses.

It has also proposed to hike the tariff in industrial sector from 10 to 20 percent. Industries have to pay a minimum charge for the load quantum approved by the power utility whether or not they fully utilize the approved load amount. Small industries, cottage industries, trading, irrigation community, drinking water and entertainment businesses have different tariffs.

Previously, ETFC had revised the tariff as of August 2016. Then, NEA had worked to control leakages due to which it was able to limit loss to Rs 970 million in the last fiscal year, as compared to Rs 8.9 billion for the fiscal year 2015-16.

Still, NEA’s cumulative loss amounts to Rs 35.6 billion.


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