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NEA rejects India’s proposal to raise power price by 20pc

July 08, 2018

The Kathmandu Post, 8 July 2018

State-owned utility Nepal Electricity Authority (NEA) has rejected India’s proposal for upward revision of electricity tariff by 15 to 20 per cent per unit of power.

Nepal-India Power Exchange Committee meeting, held in New Delhi on Thursday and Friday, to discuss the revised price for the electricity imported from India inconclusively.

The Indian panel led by Central Electricity Authority (CEA) Member Prakash Maskey proposed a 15 to 20 percent hike, citing increased cost of power generation.

Nepal declined the Indian proposal saying the price rates of electricity imported from India are already high.

NEA Managing Director Kulman Ghising, who lead the Nepali panel at the meeting said, “Nepal gets electricity at a cheaper rate than Indian consumers. Representatives from the Indian State of Uttar Pradesh were adamant to hike the electricity price.”   

The NEA imports electricity from India via 132 kV, 33 kV and 11 kV transmission lines. It pays INR 5.55 per unit for importing power over 132 kV transmission lines, and INR 6 and INR 6.45 per unit over 33 kV and 11 kV lines respectively. NEA Spokesperson Prabal Adhikari, who attended the meeting in New Delhi, said, “The rate is already high. India increased power price by 5 percent for the last six consecutive years when there was no power exchange committee meeting.” The two parties decided to discuss this proposal at its next meeting due within three months.

Nepal, India mull power banking

Kathmandu: Nepal Electricity Authority (NEA) held a separate meeting with India’s Central Electricity Authority (CEA) to establish a power banking deal between Nepal and India.

Power banking is barter of electricity for electricity instead of payments. One country exports electricity to the country it has a pact when it has surplus. It imports the same amount when it has production deficit.

“India is positive to establish such a deal. They will send us the modalities adopted by various Indian agencies that are doing energy banking at their state-levels,” said Ghising.

Regarding the funding and modalities of implementing the 400 kV New Butwal-Gorakhpur Cross-Border Transmission Line Project, both parties agreed to discuss it at another meeting within a month.

The fifth energy secretary-level joint steering committee meeting held between the two countries in April had informed the NEA and the CEA to give suggestions to the committee on the modalities of cross-border transmission line project within three months. (PR)

Source: http://kathmandupost.ekantipur.com/news/2018-07-08/nea-rejects-indias-proposal-to-raise-power-price-by-20pc.html