Kathmandu: India has agreed to maintain a ceiling of Rs 19.20 (INR 12) per unit on electricity to be imported by Nepal at a time when the landlocked country has been paying up to Rs 38 per unit to India.

During the ongoing visit of Prime Minister Sher Bahadur Deuba to India, the Central Electricity Regulatory Commission (CERC) of India on Friday directed the authorities concerned not to charge excessive cost on electricity exported to Nepal, said Suresh Bahadur Bhattarai, spokesperson of Nepal Electricity Authority. Nepal has been purchasing electricity through the Indian Energy Exchange (IEX), which has been witnessing abnormal rise in energy price after Russia invaded Ukraine.

In an order issued by the electricity regulatory body of India, the Indian authorities have stated that there has been a massive rise in electricity price with the rise in temperature and increased economic activities due to a decline in coronavirus cases. “Soaring gap between demand and supply of energy and two-fold rise in bidding price have taken the market clearing price to up to INR 20 per unit,” reads the order.

According to the CERC, the new provision has come into effect since Friday. The order will be effective in both the go-ahead market and real time market.

Since April 30, 2021, India has permitted Nepal to purchase and import electricity at competitive rate from the IEX whenever it is needed. Since last November, electricity generated in Nepal has also been allowed to be sold at competitive rates in the Indian market.