CIM urges ERC not to increase electricity tariffs

KATHMANDU: Media reports suggesting that Electricity Regulatory Commission (ERC) is considering an increase in electricity tariffs have drawn the attention of Chamber of Industries Morang (CIM).

In a press statement, CIM stated that the industrial sector has been experiencing issues such as load shedding, tripping, and low voltage for a long time. They emphasised the need for enhancements in electrical capacity and infrastructure.

CIM President Rakesh Surana detailed the challenges being faced by industries and business sectors. These encompass managing consumption, recovery, and unit electricity costs, as well as the repercussions of tariff increases on production costs.

Surana voiced concerns about potential labour management problems if power cuts occur unexpectedly. He observed that the existing infrastructure results in frequent power cuts during minor weather events, disrupting the production process. This, along with the rising costs of generators and electricity prices, has impacted the competitiveness of the domestic industry. Surana questioned who would assume responsibility for the necessary actions on the industry’s machinery due to power cuts, and who would shoulder the burden of the Nepal Electricity Authority (NEA)'s tariff, which is passed onto the customer without dispute.

Meanwhile, CIM has urged NEA to address the issues of load shedding, power quality, frequent low voltage, and tripping, and to ensure the availability of electricity in the sector. Furthermore, CIM has urged the ERC to refrain from increasing electricity tariffs that impact daily life, bearing in mind the established electricity tariffs of other SAARC countries.