Banking News – The government has intensified preparations to reduce electricity tariffs during the monsoon season, with the aim of increasing domestic power consumption and providing cheaper electricity to consumers and industries.

The Nepal Electricity Authority (NEA) formed a committee on Shrawan 13 to review electricity tariff rates following a proposal from Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha. The committee is now working on measures to provide electricity to consumers and industries at concessional rates.

The committee, coordinated by NEA Board Member Anshukiran Shahi, is scheduled to meet today. Representatives from the Ministry of Energy, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), energy experts, consumer representatives and financial experts are members of the committee. The meeting, scheduled for 4 pm at the ministry, will discuss options for reducing electricity tariffs.

According to coordinator Shahi, the tariff review is being considered in response to the surplus electricity generated during the monsoon season, much of which is currently being wasted. The objective is to increase domestic electricity consumption by introducing a seasonal tariff.

Shahi said the NEA has been facing losses of billions of rupees every month when surplus electricity goes unused during the monsoon. Under the proposed seasonal tariff, consumers and industries would receive electricity at lower rates to encourage higher consumption.

The authority is also preparing to provide concessional electricity rates to industries. Discussions are underway on whether lower electricity costs during the monsoon could help industries reduce their production costs and, in turn, offer goods to consumers at more affordable prices.

“The meeting is being held today to determine how electricity tariffs can be reduced through a seasonal tariff. We are also discussing how industries can pass on the benefits of cheaper monsoon electricity to consumers through lower prices,” Shahi said.

The government has faced criticism over electricity-related charges and taxation, while the Energy Ministry is now exploring measures to provide relief to consumers through a revised tariff structure. The committee is expected to make a decision soon.