header banner

PAC tells NEA not to waive premium tariff

alt=
By No Author
KATHMANDU, Jan 8: The parliamentary Public Accounts Committee (PAC) has directed Nepal Electricity Authority (NEA) not to implement Electricity Tariff Fixation Commission's decision to waive premium tariff being levied on industries, hospitals and other firms that are enjoying uninterrupted power supply.

NEA had started slapping 100 percent premium on tariff rate for 135 firms and organizations, which are getting uninterrupted power supply through dedicated feeders, from mid-July last year.

But stating that the premium has been levied without seeking its permission, Electricity Tariff Fixation Commission had, last week, directed NEA not to charge premium tariff. As per the commission's directions, the board meeting of NEA held on Monday had decided against levying premium tariff on consumers enjoying uninterrupted power supply.

Speaking at the meeting of PAC on Thursday, NEA's Managing Director Mukesh Raj Kafle claimed the premium was levied after taking permission from the commission and after publishing notice for Expression of Interest (EoI). Kafle claimed that the premium tariff levied on firms, who are enjoying uninterrupted power supply due to political influence, was necessary to improve financial health of state-owned power utility.

NEA posted net loss of Rs 6.4 billion in 2014/15. Its accumulated loss over the past five years is in tune of Rs 27.5 billion.

PAC has also directed NEA to make public the list of firms enjoying uninterrupted power supply within three days. The parliamentary committee has also told NEA to devise a clear policy before giving special privileges to its customers.

NEA has also said that it was making loss because of the reluctance of the commission to increase electricity tariff.

Electricity tariff has not been increased in the past three years.

Speaking at the meeting, Jagat Kumar Bhusal, chairman of the commission, said they have to consider different factors before taking decision on hiking electricity tariff. He also said the commission was doing needful study to review the electricity tariff.

PAC Chairman Janardan Sharma said the commission's directive to NEA to stop levying premium tariff was suspicious.

Bhusal, however, argued that NEA levied premium tariff without seeking its permission.




Related story

NEA moves to lower premium tariff for commercial users

Related Stories
ECONOMY

NEA mounts pressure on local govts to clear tariff...

Nea1_20211008170000.jpg
ECONOMY

Dedicated and trunk line tariff dispute remains un...

NEA_20200217103508.jpg
ECONOMY

PM’s claim on reduced irrigation tariff ‘inaccurat...

Prime minister KP Oli.jpg
SOCIETY

PAC summons meeting to discuss Sajha irregularitie...

Sajha-Heaing-2.jpg
ECONOMY

Electricity Regulatory Commission proposes new dir...

NEA_20191104081559.jpg