Long wait for market regulator in hydropower sector receives decisive government action; Electricity Regulation Commission comes online to regulate all power generating companies

The long wait for a regulating body for hydropower sector during and after the process of issuing public stocks has finally ended with the introduction of Electricity Regulation Commission. The new commission was formulated under the  legal provisions of Electricity Regulation Commission Act 2074 and Electricity Regulation Commission Bylaws 2075 following which all the institutions related to electricity generation willing to float public shares will need to acquire permission from the new commission before applying with Securities Board of Nepal for the board’s approval.

Following the new provision, hydro generation companies that have already submitted their applications to SEBON to float public shares and are awaiting board’s confirmation will also need to apply with the commission for its approval.

The latest move will help to provide more supervision and promote transparency and professional practices in the energy sector and trading of stocks related to the field in NEPSE, as per the government and the security market regulators.