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Electricity Reforms and Regulations in Nepal

Electricity Reforms and Regulations in Nepal. Navin Dahal South Asia Watch on Trade, Economics & Environment (SAWTEE). Outline. An overview of electricity sector in Nepal Reforms and Regulations in the Power sector Conclusion and Recommendations. An overview of electricity sector.

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Electricity Reforms and Regulations in Nepal

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  1. Electricity Reforms and Regulations in Nepal Navin Dahal South Asia Watch on Trade, Economics & Environment (SAWTEE)

  2. Outline An overview of electricity sector in Nepal Reforms and Regulations in the Power sector Conclusion and Recommendations Programme

  3. An overview of electricity sector Ranks 2nd in terms of water resources after Brazil on global scenario. Hydro-power potential of 83,000 MW. Economically viable-42,000 MW. Only 40 percent of Nepalese have access to electricity. 8 hours per day load shedding Additional power generation will not be sufficient to meet demand Programme

  4. An Overview Electricity rates in Nepal are among the highest in the world. Hydro power sector has remained the state monopoly for a long time. Concentration of generations, transmission and distribution (NEA) Single Buyer dominates the market Programme

  5. Installed Capacity (MW) Source: NEA, FY 2063/64 (FY 2006/07) Programme

  6. Electricity consumption and sales (in GWh) Note- Provisional Figures, Subjected to Final Audit Source: NEA, FY 2063/64 (FY 2006/07) Programme

  7. Growth of Consumers Source: NEA, FY 2063/64 (FY 2006/07) Note: *Provisional Figures; subject to final edit Programme 7

  8. Net system losses (including Transmission and Distribution loss) Source: NEA, FY 2063/64 (FY 2006/07) Note: *Provisional Figures (Subjected to Final Audit) Programme

  9. Policy and Acts Hydro Power Development Policy, 1992 • Opened doors for private sector involvement in power generation • Electricity Act, 1992 • An act to as per the Hydro Power Development Policy 1992 Programme

  10. Policy and Acts • The Foreign Investment and Technology Transfer Act, 1992 • An Act made to provide for matters relating to foreign investment and technology. • The Industrial Enterprise Act, 1992 • An act made to facilitate industrial enterprise.

  11. Proposed Electricity Act • Unbundling of NEA: Separation of generation, transmission and distribution • A separate body for the regulation of this sector known as National Electricity Regulatory Commission • DOED – licensing of new generation, transmission, and distribution projects

  12. Distribution Hydro Power Development Policy, 1992 has mentioned that the electricity generated from a hydroelectric project must be distributed through the NEA. Programme 12

  13. Regulatory Body Department of Electricity Development (DOED) under the Ministry of Water Resources (MOWR) regulates the electricity sector. DOED is responsible for assisting MOWR in the implementation of overall government policies related to the power/electricity sector. Tariff Fixation Commission Programme

  14. Conclusion Independent regulatory body. Un-bundling of NEA on generation ,transmission and distribution. Encouraging private investors. Enforcement of new electricity Act. Creating conducive environment for investment.

  15. Thank You Programme

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