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The government has intensified its homework to reduce consumer tariff rates by introducing a ‘seasonal tariff’ system, under which electricity prices will be cut during the rainy season when surplus power is generated and otherwise wasted. The measure aims to boost domestic consumption by providing households and industries with subsidized electricity at times of excess supply.

The Nepal Electricity Authority (NEA), which formed a committee on July 29 to review electricity tariff rates on the proposal of Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha, has taken forward its homework to provide electricity to consumers and industries at subsidized rates.

The committee, formed under the coordination of Anshu Kiran Shahi, a member of the NEA’s Board of Directors, includes representatives from the Ministry of Energy, the Federation of Nepalese Chambers of Commerce and Industry, energy experts, consumer and finance experts.

According to a press statement released by the Energy Ministry, the committee members are discussing measures to reduce electricity prices. The Committee Coordinator Shahi said that the tariff is being reviewed to increase domestic consumption, considering the current situation in which excess electricity is being generated during the rainy season and is being wasted.

Stating that the NEA is losing billions of rupees a month due to the wastage of electricity during the rainy season, he said that consumption will be increased by providing electricity to consumers and industries at subsidized rates through the 'seasonal tariff'.

According to Shahi, they are also making preparations to provide concessions to industries. Coordination is also being done to see how much cheaper electricity they can provide to consumers by making the monsoon season electricity cheaper for industries.

Amid criticism that the government has increased electricity taxes, the Ministry of Energy is looking for ways to provide concessions to consumers. In this regard, the government has formed a committee and is doing the necessary homework.