November 18: The Electricity Regulatory Commission on Sunday (November 17) issued the Electricity Consumer Tariff Determination Directive 2076. With the new regulation in force, Nepal Electricity Authority (NEA) will now have to furnish explanation in case it decides to hike electricity tariff.
Under the Electricity Tariff Determination Regulation 2050, NEA could hike the tariff not more than 5 percent once in a year. But the new directive allows the NEA to hike the tariff by 15 percent in a year.
The commission had earlier rejected the proposal forwarded by the NEA board to increase electricity tariff at once. Instead, the commission issued the directive which categorically outlines the process of increasing the electricity tariff under different heads, said the commission’s chief Dilli Bahadur Singh.
“We cannot allow NEA to increase the tariff at once. So we asked the authority to present the details for increasing electricity tariff under the framework of the directive,” said Singh.
The NEA needs to report its current status, future plans and strategies as well as the standard of electricity supply, regularity and adequacy of supply while determining the new price.
The electricity governing body must also include the present tariff and the proposed rate and the percentage of price hike as well as convincing reasons for the increase in electricity tariff to the commission for determining the new price.