What should NEA consider before introducing new tariff?

DWAIPAYAN REGMI | INVESTOPAPER

As of now, there has been discussion over revising Electricity bills across the nation. There has been a huge concern from the individual level to those of firms about how the revised bills will appear. The new tariff rate should be fostered with the current demands around. It has now been a couple of years that Nepal made a huge revolution over electricity supply. Three years back, no one would have even thought that Nepal would face this level of brightness in the Electricity Sector. Thanks to Ghising!

However, Electricity reflects a bit modified concept here. It can be created, it can be destroyed – but cannot be stored, just transferred. The recent visit of Bangladeshi’s team and their interest over electricity in Nepal is appreciative. That also reflects the fact that Nepal will be self-sufficient in this sector. Hence, the tariff should be equally designed considering the following major aspects.

Promoting Electricity Usage

A large number of pieces of equipment in Nepal are still run by diesel, petrol, kerosene or gas. This is the time when electricity could replace them all. However, we are habituated towards the actual movement across. We are habituated to buy a gas cylinder, and fill up our vehicle with petrol. The new tariff should be designed accordingly considering alternative sources. Only then, the level of import of energy will lower down. Cooking through induction might be cheaper, but induction cannot be sustainable means like the stove here.

Justice to small users

In the name of promoting electricity consumption, it might be possible that the tariff would be designed accordingly. However, small electricity consumers mustn’t be victims out of it. The price tariff should be justified to these small users as well. There are a large bunch of consumers, who use just a couple of bulbs to manage up their living, and they won’t require any additional either. It would be unfair to put an additional burden over them in such cases.

Easy installation procedure

Still, the installation procedures are a month-long process. From the documentation phase to the electricity installation stage – there are tedious procedures. Also, the primary level of charge that NEA charges are pretty high. It would be wonderful if they could rethink the installation charges apart from the tariff rates. This would discourage sharing electricity concept and people could make charges upon their own.

Discouraging Leakages

Leakages are a disturbing element in the regular flow of electricity. Although the proportion of leakages happening has drastically reduced, they are still prevalent. New tariffs should equally be concerned about discouraging leakages. This would not only gather revenue for NEA but would prove transparent electricity supply across the nation.

Conclusion

Before sales of these electricity, satisfactory supply with satisfactory costs should be ensured to people living within. The price of crude oil and petrol ain’t that huge in OPEC nations. Electricity supply should not be that complicated and highly charged in Nepal.

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