Regulatory body for hydropower companies confident of bringing market reforms in energy sector
May 23, 2019 | Investopaper
Securities Board of Nepal (SEBON) has made a press release and there is good news for investors favoring hydro sector. Electricity Regulation Commission will now be a regulatory body for the hydropower sector which was formulated under the legal provisions of the Electricity Regulation Commission Act 2074 and Electricity Regulation Commission Bylaws 2075.
This means that with the introduction of the regulatory body, those hydropower companies who want to float shares to the general public will need approval from the commission before applying to SEBON for the public issue. Similarly, the companies will also be monitored after the issue by the same commission.
For those hydro companies who have already submitted the application for the public issue to SEBON, they still need to apply with the commission to receive the approval.
The board is confident that with the introduction of a regulatory body in the hydro sector the investors will feel more secure to invest in hydropower companies eventually making the stock market more effective. This is because the commission will work to work as a regulatory board to promote transparency and sectoral reforms in the energy sector as well as maintain the criteria for new public issue of hydro companies.
