Electricity Tariffs to Vary Based on Consumption Time; Government Prioritizes Private Investment, Research, and Green Energy
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NEPSE trading
Kathmandu, May 29 – The Government of Nepal has announced that electricity tariffs will now vary based on the time of consumption, particularly for industrial and residential users.
Presenting the budget for the fiscal year 2082/83 in a joint session of the Federal Parliament, Finance Minister Bishnu Prasad Paudel stated:
“Electricity tariffs will be structured differently based on energy demand, consumption, and time of use for both industrial and household consumers.”
NPR 86.01 Billion Allocated for Energy, Water Resources, and Irrigation Ministry
The government has allocated NPR 86.01 billion to the Ministry of Energy, Water Resources, and Irrigation for the upcoming year. Key priorities include:
Promotion of research and development in the energy sector
Digitization of underground water resource utilization
Energy security through diversified production
Priority for reservoir-based hydropower projects
Private Sector Involvement and Export Emphasis
Private investment in electricity generation, transmission, and distribution will be encouraged
Diplomatic efforts will be made to increase electricity exports
Support for Green Energy and Major Projects
Study on green hydrogen will be initiated
Solar and wind energy connected to the national grid will receive purchase rates equivalent to reservoir-based hydropower
Key Infrastructure Initiatives
Investment structures will be prepared for projects like Upper Arun, Sunkoshi-3, and Karnali Chisapani
Engineering designs will be completed
Transmission lines will be built in sync with project completion
Take-and-pay model will be introduced for run-of-the-river (RoR) hydropower projects
Industry and Transmission Provisions
Industries building their own transmission lines will be allowed to set wheeling charges
Cross-Border and Domestic Transmission Expansion
Cross-border transmission lines will be developed
Kohalpur–Surkhet 132 kV transmission line to be completed within this fiscal year
Shift to Electric Cooking
Promotion of electric stoves as a replacement for LPG gas
Revenue to Be Deposited in Federal Reserve Fund
Income generated from projects like Rani–Janakpur, Kulharya, and Sunkoshi–Marin Diversion will be deposited into the federal reserve fund.
This policy package reflects the government’s focus on energy independence, import substitution, export promotion, and the development of sustainable and green energy infrastructure.
