Nepal | September 22, 2020

NEA asks ETFC to hike power tariff

Himalayan News Service
Share Now:

Kathmandu, August 7

Nepal Electricity Authority (NEA) has sent a proposal to the Electricity Tariff Fixation Commission (ETFC) to hike electricity tariff to minimise the loss being incurred by the power utility.

The board of NEA has approved the proposal and forwarded it to the commission to adjust the tariff, as NEA has been facing losses due to higher rates at which it purchases power as compared to its selling price. The power utility has proposed to hike tariff as per its Financial Restructuring Plan, which was issued last fiscal to transform the NEA into a profit-generating entity.

According to NEA sources, the power utility has proposed to hike tariff in industrial sector from 10 to 20 per cent. For the industrial sector, the authority has proposed to hike the tariff on demand (load quantum approved by the NEA) by 10 per cent. Industries have to pay minimum charge for the load quantum approved by the power utility whether or not they fully utilise the approved load amount.

Likewise, the NEA has proposed 20 per cent hike in tariff for electricity consumed on top of the approved load quantum. However, different tariffs have been proposed for rural cottage industries, small industries, trading, irrigation, community drinking water and entertainment businesses.

Industrial sector consumes around 37 per cent of the total electricity supplied by the NEA.

Similarly, NEA has proposed to review the slab set for the household users. There are different rates based on the quantum of electricity consumed by the households. The NEA has proposed revising the minimum slab to 20 units from 10 units at present.

“We have proposed to revise the slab for household users instead of revising the tariff,” an official of the Finance Department of NEA, said. Electricity tariff for the households has been determined based on the consumption level. Those who consume more energy have to pay higher tariff than those that consume less electricity.

The ETFC had last revisited the tariff in August last year, raising by 19 per cent for the household users.

As household users consume the largest chunk of electricity supplied by the NEA, the power utility has said that revision in slab for households will cover the current loss of the power utility.

After the ETFC revised the tariff last year and NEA took initiatives to control leakages, the power utility was able to limit its loss to Rs 970 million in the last fiscal, as compared to Rs 8.9 billion in the fiscal 2015-16.

However, the NEA’s cumulative loss is still high at Rs 35.6 billion.


A version of this article appears in print on August 08, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Photo Gallery: Rohingya refugees receive relief in Kapan amid COVID-19 crisis

KATHMANDU, SEPTEMBER 21 Hiteri Foundation provided food relief packages to long-persecuted Rohingya Muslim refugees here in Kapan on Sunday, September 20. More than 175 families are taking shelter in Kapan after entering Nepal following a mass exodus from their native Myanamar. Also seen in pi Read More...

In Pictures: Lalitpur school provides internet facility to students sans access

Lalitpur, September 21 Teachers take online classes with internet facility provided by school at the empty classroom of Shree Rudrayanee Secondary School in Khokana, Lalitpur on Monday, September 21, 2020. The School has facilitated internet access to those students who cannot avail the same at h Read More...

A magnificent view of Kathmandu as captured from Swayambhu on Monday, May 9, 2016. Photo: RSS

674 more infections logged in Kathmandu valley, amounts to over 58pc of total new cases

KATHMANDU: Kathmandu valley on Monday logged 674 new cases of coronavirus infection. As per the Health Ministry's latest report, of the total cases, the capital recorded 538 cases while 62 new infections surfaced in Lalitpur. Meanwhile, the number of active infections have been increasing stea Read More...

Nepal COVID-19 Update: 1154 new cases, 1005 recoveries, 16 fatalities logged Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. Read Also: 674 more infections logged in Kathmandu valley, amounts to over 58pc of total new cases Read More...

Indian filmmaker Anurag Kashyap to pursue legal route against sexual misconduct allegations, actress Payal Ghosh to file FIR

KATHMANDU: Bollywood filmmaker Anurag Kashyap, who has been accused of sexual misconduct by budding actress Payal Ghosh, said he intends to pursue legal action while the actress has said she will file an FIR against him. Issuing a statement through his lawyer, Kashyap also said it was sad that a Read More...

Indian actress Richa Chadha initiates legal action after Payal Ghosh drags her name in #MeToo case against Anurag Kashyap

KATHMANDU: Bollywood actress Richa Chadha has revealed that she has initiated legal action against after her name was dragged in a defamatory in #MeToo case against filmmaker Anurag Kashyap by actress Payal Ghosh. In a video released to ABN Telugu, Ghosh claimed that Kashyap tried to harass her i Read More...

American actress Mindy Kaling finds Deepika Padukone, Sonam Kapoor talented, wants to work with them

KATHMANDU: Indian origin American actress Mindy Kaling wants to work with Bollywood actresses Deepika Padukone and Sonam Kapoor as she finds them talented. "I would love to work with Sonam Kapoor or Deepika Padukone. They're both so talented," Mindy was quoted as saying Read More...

Manchester City _Ilkay Gundogan

Man City's Gundogan tests positive for COVID-19

LONDON: Manchester City midfielder Ilkay Gundogan has tested positive for COVID-19, the Premier League club said on Monday, making him the third player in the squad to return a positive test in recent weeks. City winger Riyad Mahrez and defender Aymeric Laporte previously tested positive for the Read More...