NEA mulling over increasing electricity tariff rate by 10 to 15 percent

Published On: February 28, 2024 02:55 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Feb 28: Nepal Electricity Authority (NEA) is considering a hike in electricity tariffs ranging from 10 to 15 percent.

The NEA has decided to adjust the tariff based on customer categories, citing a deficit of Rs 0.12 per unit. Sources say that the NEA has determined the necessity of raising the management fee to ensure the sustainability of its operations.

A senior official of the NEA said, “The NEA does not profit from electricity sales. To ensure the provision of quality electricity and fund system improvements, increasing the tariff is the only viable option." The officer further said, "We have initiated preparations to adjust the tariff accordingly."

The committee formed by the NEA has already proposed increasing the tariffs by 10 to 15 percent. The tariffs will increase only after the NEA's decision is approved by the Electricity Regulatory Commission.

"We have recommended a tariff hike ranging from 10 to 15 percent. The NEA's management committee will determine the extent of the increase based on our recommendations," mentioned a committee member.

Under the proposed revisions, customers currently paying Rs 10 per unit would see their rates rise to Rs 11 with a 10 percent increase and Rs 11.5 with a 15 percent increase.

For single-phase low-voltage customers (230 volts, 15 amperes), the energy charge is currently set at Rs 9.50 per unit for consumption between 15 to 100 units. The minimum monthly charge is Rs 100. With a 10 percent increase, the energy charge would climb to Rs 10.45 per unit, and with a 15 percent increase, it would be Rs 10.925 per unit.

Customers using three-phase low voltage (400 volts) up to 100 kVA will be charged Rs 10.50 per unit from the Nepali month of Asar to Kartik and Rs 11.50 per unit from Mangsir to Jestha.

Following the proposed adjustments, customers will have to pay Rs 11.55 per unit from Asar to Kartik and Rs 12.07 per unit with a 15 percent increase. From Mangsir to Jestha, the charges will amount to Rs 12.65 per unit with a 10 percent hike and Rs 13.22 per unit with a 15 percent increase.

The NEA is poised to hike fees during off-peak hours. Previously, tariffs were kept low due to lower consumption during off-peak periods. However, with consistent demand throughout the day, the NEA has decided to raise prices accordingly.