Panel mulling over electricity tariff hike

The Electricity Tariff Fixation Commission has formed a four-member sub committee to look into the possibility of hiking electricity tariff. The panel is expected to take a call on the hike in a week.

The Uttar Kumar Shrestha-led sub committee has Sri Ranjan Lacoule, Mahendra Bahadur Gurung and Satish Tripathi as members.

The power tariff hike has remained a hot-button issue for long with then commission chair Mahendra Nath Aryal refusing to hike the tariff without pledge to restructure the Nepal Electricity Authority and then Jhala Nath Khanal government subsequently dissolving the body.

The government had reconstituted a new commission a few weeks ago under Ganesh Subba. While NEA had proposed increasing the power tariff by 30 per cent, the commission had sought assurance of NEA’s financial and administrative restructuring first.

The power tariff was last hiked in 2001. Dispute among the Water Resources Ministry, NEA and the commission has hindered the efforts to hike the power bills thereafter. The commission can hike the tariff by three percent annually, but should furnish an explanation to the government if it wants to opt for a hike of more than three per cent.

“There’s no alternative to tariff hike. It’s only a question of how much,” Dipendra Nath Sharma, the NEA managing director, said.