Government preparing to let private sector trade electricity before Dashain: Minister Shrestha

Minister for Energy, Water Resources and Irrigation Birajbhakta Shrestha has said the policy arrangements needed to allow private sector entry into electricity trading have reached their final stage. He said preparations are underway to grant the private sector permission to trade electricity before Dashain.

Speaking at a press conference at the ministry on Wednesday to make public the ministry's six-month achievements, Minister Shrestha said agreement has been reached with India to raise electricity import capacity to 1,400 megawatts and export capacity to 1,650 megawatts.

He also informed that a mechanism is being built to charge lower tariffs to customers who use more electricity, in order to boost power consumption. According to him, VAT-related issues have created problems in this regard, and coordination is underway with the Ministry of Finance to address it. He said the electricity tariff system would be streamlined soon.

Minister Shrestha also said the government is committed to resolving the problems faced by the private sector in hydropower projects.