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The Electricity Regulatory Commission (ERC) has moved forward with the process of gradually transforming Nepal’s electricity market from a Nepal Electricity Authority (NEA)-centered structure into an open and competitive market. To implement open access, the commission has begun laying the groundwork to provide individuals and institutions involved in electricity generation and consumption with open access to the transmission and distribution systems through the NEA by publishing drafts of two additional directives.

The commission has made public the draft Grievance Resolution Directive, 2026 and Balancing and Settlement Directive, 2026 for feedback, suggestions, and comments from stakeholders and the general public.

The commission’s 314th meeting, held on August 7, 2026, decided to publish the drafts of both directives.

The commission, which had already issued the Directive on Open Access to Electricity Transmission and Distribution Systems, 2026 last December, said it has prioritized preparing the related directives necessary for its full implementation.

Separate mechanism proposed to resolve open-access disputes

The commission said the draft Grievance Resolution Directive has been prepared to ensure the prompt, impartial, transparent, and effective resolution of complaints and disputes related to open access.

The draft proposes that initial-level complaints and disputes be resolved through a Grievance Resolution Committee. If a party is dissatisfied with the committee’s decision, the draft also provides for the dispute to be referred to the Electricity Regulatory Commission for resolution.

According to the commission, this will establish an institutional process for resolving complaints and disputes that may arise during the use of open access.

Open-access transactions to follow monthly and weekly schedules

The draft Balancing and Settlement Directive will provide guidance to make the provision and use of open access in transmission and distribution systems, as well as related transactions, systematic, transparent, predictable, and time-bound, the commission said.

The draft proposes dividing open-access transactions into two categories for management. It proposes that regular transactions be managed through a monthly schedule, while deviation-related charges be managed through a weekly schedule.

The draft also provides for all transactions conducted under open access to be handled electronically through software.

Directives on transmission charges and metering to follow

The commission is preparing to gradually publish the directive for determining transmission charges and other related directives required for the implementation of open access.

According to the commission, directives related to the deviation settlement mechanism, metering, and grid connectivity will also be issued gradually for feedback, suggestions, and comments from stakeholders and the general public.

Once these related provisions are completed, individuals, institutions, and other customers will also be able to use open access through the Nepal Electricity Authority’s transmission and distribution systems, the commission said.

Market risk for NEA expected to decline

According to the commission, the absence of open-access provisions in Nepal currently means that the Nepal Electricity Authority has to bear the entire market risk.

Once the open-access directives are fully implemented, individuals and institutions involved in electricity generation and consumption will no longer have to depend solely on the NEA for electricity transactions.

The commission expects this to reduce risks in the electricity market and contribute to the development of a competitive, predictable, and reliable electricity market.

Public and stakeholder feedback invited

The commission has invited stakeholders and the general public to submit written feedback, suggestions, and comments on both draft directives it has published.

Jalasarokar