Tuesday, July 25, 2017

NEA proposes 20 per cent hike in electricity tariff

Nepal Electricity Authority (NEA) has proposed to hike the electricity tariff by 20 per cent for the industries. The government power utility has proposed to hike the tariff without affecting the tariff for household use, said a source at the NEA that has forwarded the proposal to increase the electricity tariff to the Electricity Tariff Fixation Commission (ETFC), which had increased the tariff by 20 per cent effective from mid-July last year.
The commission chair Jagat Bhushal admitted that the NEA has forwarded the proposal to hike the tariff. "We have received the NEA proposal," he said, adding that the commission has distributed the proposal to the members. "Now we hold discussions on the proposal and take a decision accordingly."
"We have proposed to hike the electricity tariff as it has been deemed necessary to keep the NEA in good financial health and ensure smooth supply of electricity, said the NEA spokesperson Prabal Adhikari.
According to NEA, if the commission approves the proposal, the tariff for industries will increase by 20 per cent, but tariff for household users won’t go up much.
The authority has also asked the commission to implement the provision to automatically hike the electricity tariff by 5 per cent every year.

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