Private sector allowed to use transmission lines, wheeling charge set; producers call it costly

The Electricity Regulatory Commission has fixed a transmission fee, or wheeling charge, for the first time, allowing the private sector to use the national transmission grid. The commission made the new charge public in Kathmandu on Thursday in the presence of Energy, Water Resources and Irrigation Minister Birajbhakta Shrestha.

According to Commission Chairman Dr Ram Prasad Dhital, medium- and long-term open access will cost nearly Rs413,000 per megawatt per month for fiscal year 2083/84 BS. Short-term access will cost about 57 paisa per unit.

The commission said the rates were set based on Nepal Electricity Authority's audited accounts for 2081/82 BS and projected future income. Under the arrangement, effective from Bhadra 31, any third party or private player trading electricity must pay this fee to the Authority.

Minister Shrestha said the arrangement would help boost private investment in energy and electricity trade. However, Uttam Bhlon Lama, senior vice-president of the Independent Power Producers' Association, Nepal (IPPAN), called the charge excessively costly and demanded a review.

According to him, Nepali electricity could become up to about Rs1.40 more expensive per unit in the Indian market. He said India does not levy a domestic transmission charge on clean energy, while Nepali producers must pay fees at three different points.