PAC tells NEA not to waive premium tariff
Fri, Jan 8, 2016 10:14 AM on External Media,
The parliamentary Public Accounts Committee (PAC) has directed Nepal Electricity Authority (NEA) not to implement Electricity Tariff Fixation Commission's decision to waive premium tariff being levied on industries, hospitals and other firms that are enjoying uninterrupted power supply.
NEA had started slapping 100 percent premium on tariff rate for 135 firms and organizations, which are getting uninterrupted power supply through dedicated feeders, from mid-July last year.
But stating that the premium has been levied without seeking its permission, Electricity Tariff Fixation Commission had, last week, directed NEA not to charge premium tariff. As per the commission's directions, the board meeting of NEA held on Monday had decided against levying premium tariff on consumers enjoying uninterrupted power supply.
Speaking at the meeting of PAC on Thursday, NEA's Managing Director Mukesh Raj Kafle claimed the premium was levied after taking permission from the commission and after publishing notice for Expression of Interest (EoI). Kafle claimed that the premium tariff levied on firms, who are enjoying uninterrupted power supply due to political influence, was necessary to improve financial health of state-owned power utility.
NEA posted net loss of Rs 6.4 billion in 2014/15. Its accumulated loss over the past five years is in tune of Rs 27.5 billion.
PAC has also directed NEA to make public the list of firms enjoying uninterrupted power supply within three days. The parliamentary committee has also told NEA to devise a clear policy before giving special privileges to its customers.
NEA has also said that it was making loss because of the reluctance of the commission to increase electricity tariff.
Electricity tariff has not been increased in the past three years.
Speaking at the meeting, Jagat Kumar Bhusal, chairman of the commission, said they have to consider different factors before taking decision on hiking electricity tariff. He also said the commission was doing needful study to review the electricity tariff.
PAC Chairman Janardan Sharma said the commission's directive to NEA to stop levying premium tariff was suspicious.
Bhusal, however, argued that NEA levied premium tariff without seeking its permission.
ELECTRICITY TARIFF LIKELY TO GO UP BY 18%
KATHMANDU (REPUBLICA): Chairman of Electricity Tariff Fixation Commission (ETFC) Jagat Kumar Bhusal has said preparation was underway to increase electricity tariff by 18 percent.
Speaking at the meeting of parliamentary Public Accounts Committee (PAC) on Thursday, Bhusal said the proposal, however, has to be approved by commission members by majority vote.
There are six members in ETFC.
Bhusal also said they had to defer the plan to hike electricity tariff some months ago due to the blockade.
NEA had last hiked electricity tariff by 20 percent in 2012 after taking permission from the commission. It was the first tariff hike in 11 years.
Source: Republica
