KATHMANDU, OCTOBER 28

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the decision of the Electricity Regulatory Commission (ERC) to reduce electricity tariff rates and not to hike power demand charges.

Issuing a statement today, the federation has stated that the reduction in electricity tariff will provide more relief to the industries and businesses facing various crises due to the coronavirus pandemic. It may be noted that the FNCCI had been demanding the electricity demand fee not be raised.

Stating that the private sector is encouraged by the decision not to increase the demand fee, the FNCCI has also expressed gratitude to the Minister of Energy, Water Resources and Irrigation Pampha Bhusal, officials of the ministry, Electricity Regulatory Commission and Nepal Electricity Authority.

'We are confident that this decision will help expand economic activities to a certain extent,' the federation has said, adding that tariffs for industrial customers should be cheaper to increase electricity consumption and also help create a competitive market and reduce trade deficit.

The federation has also urged the government to resume signing of power purchase agreements with the projects that have completed physical infrastructure.

A version of this article appears in the print on October 29, 2021, of The Himalayan Times.