Ministry of Water Resources registered Nepal Electricity Regulations Commission Bill Friday afternoon to make new arrangements for regulating electricity sector and replace Electricity Tariff Determination Regulations 2050 BS.
The commission will manage technical aspects of national electricity system including its standard and safety, maintenance and operation.
The commission will be given rights to recommend the government on the policies and action plans required to make production, transmission, distribution and supply reliable and effective.
The commission will also be entrusted with powers to determine electricity tariff, purchase and selling rates, electricity purchasing procedure and settle dispute over tariff fixed by private sector producing power up to 1 megawatts. It will also settle the dispute among the private sector producers.
The bill has given the commission the responsibility of safeguarding customers’ interest by maintaining competition in the electricity market and stopping possible monopoly in the electricity market. The commission will have to conduct public hearing before determining the tariff of electricity, according to the bill.
The commission can fine up to Rs 5 million to the licensee disobeying its instructions. The commission’s decisions can be challenged at concerning appellate court. The commission will submit its annual report to Nepal government.
The proposed five-member commission will be chaired by a person having at least bachelor’s level study in commerce, law, engineering, economics or accounts and 10 years´ experience in these fields. At least one member will be woman. The commission will have a permanent office with a secretary as its administrative head.
The ministry also registered a separate Electricity Bill to change existing complicated legal provisions which are blamed for discouraging private sector investors in electricity sector.
The bill has scrapped the mandatory provision for acquiring license for producing and distributing electricity up to 3 megawatts. The bill proposes that up to 10 percent share of the projects should be given to local people taking into consideration the capacity of the people.
The bill has proposed to waive Value Added Tax while purchasing equipment and materials for electricity projects and limit the customs duty to one percent to encourage the investors. The bill has also guaranteed that none of the projects will be nationalized. To create investment-friendly environment, the bill proposes “one-door committee” headed by water resources minister. Secretaries at Water Resources, Finance, Home, Forest, Land Reforms and Management and Environment, Science and Technology will be its members.
yuvraj@myrepublica.com
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