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Started 14 hours ago · Updated 14 hours ago

Nepal Electricity Authority to Restructure into Three Companies, Finance Minister Announces

Photo · www.fiscalnepal.com

The Government of Nepal has announced a major restructuring of the Nepal Electricity Authority (NEA), dividing it into three separate companies for electricity generation, transmission and distribution, and trading. Finance Minister Dr. Swarnim Wagle presented the budget for fiscal year 2083/84, stating the long-delayed reform aims to improve efficiency and transparency in the energy sector.

  • The restructuring is part of a broader energy sector reform and power sector modernization plan.
  • The government aims to address operational bottlenecks and encourage competition and investment in the energy market.
  • The budget also allocated NPR 85.54 billion for the energy sector and NPR 5.93 billion for the information and communication sector.
  • The national grid capacity is targeted to reach 5,535 megawatts next fiscal year with an addition of 1,040 megawatts.
  • The government also plans to cancel licenses for projects with delayed construction and introduce a new 'take or pay' model for Power Purchase Agreements.

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Government of Nepal Swarnim Wagle Parliament NEA Nepal Electricity Authority

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