The Nepal Electricity Authority (NEA) Wednesday announced a 2.45 percent hike in power tariff for up to 20 units of electricity effective from September 1.
Tariff has been hiked to meet increased power demand, rural electrification among other reasons, state owned Radio Nepal said. Donors have been pressing NEA to increase tariff as a condition for new loans. Overall tariff will jump 10 percent, other reports said.
The NEA has agreed to purchase 37 million units of electricity annually for 25 years from the Molniya Power Power Pvt.Ltd. under a power power purchase agreement, an announcement said. The private company runs a 5 MW hydel power unit by damming a river in Rasuwa district.
Government has privatized the power generation sector previously the monopoly of the NEA.