Plan to split Electricity Authority into three companies reaches final stage

Preparations to restructure the Nepal Electricity Authority into three separate companies have reached the final stage, with the Ministry of Energy, Water Resources and Irrigation finalizing the roadmap for the move.

The government had announced in the budget for the current fiscal year 2083/84 that it would complete the long-discussed restructuring of the authority. Under the proposed structure, generation, transmission, and distribution-trading will each be handled by a separate company.

The ministry says the roadmap will settle the distribution of the authority's assets and liabilities, staff adjustment, and the operating structure. However, energy sector experts have warned that restructuring carried out without a proper legal basis could create new complications.