Kathmandu: The government has reduced the electricity tariff rate by an average of 1.04 percent, which will come into an effect from November 17.

By organizing a press meet on Wednesday, the Electricity Regulatory Commission (ERC), unveiled the new rates of electricity use. In the new rate, households consuming electricity through the 5 Ampere capacity line will have to pay Rs 30 for using up to 20 units per month. The rate will be Rs 3 per unit for electricity consumption of more than 20 units.

According to Nepal Electricity Authority, around 1.9 million households fall in this category of electricity usage. The ERC Chairman Dilli Bahadur Singh said through the new rate, the government has targeted to relieve the deprived groups by charging only a minimum fee and waiving other surcharges on the energy consumed by these people.

Singh said the electricity tariff will be reduced by an average of 2.84 percent when it accounts the usage by households alone. “The new rate is expected to boost electricity consumption by the households for their daily purpose,” he said.

The electricity tariff rate for the single-phase service users has been reduced from Rs 10 per unit to Rs 9.50 per unit for the consumption of electricity between 51 units and 250 units. Likewise, those consuming electricity of more than 250 units a month will have to pay electricity bills at Rs 11 per unit, which is Re 1 less than the existing rate.

According to the ERC, the tariff rate for users of electricity for irrigation has been reduced by an average of 40.69 percent. The three-phase users will be charged with two separate rates for the billings of mid-June and mid-November and during mid-December and mid-May.