Kathmandu, May 29: The Government has decided to divide the scope of work of the state-owned Nepal Electricity Authority into three different agencies.
Reading out the budget estimates for the upcoming fiscal year 2026/2027 in the federal parliament today, Finance Minister Dr Swarnim Wagle said the NEA will be restructured into three separate companies for generation, transmission, distribution and trading of power in the country.
The NEA is currently a state monopoly, overseeing and regulating all aspects of power production, distribution and transaction in the country.
The government has also decided to cancel the licenses of projects that have not been started construction despite a Power Purchase Agreement (PPA) and will conduct PPA on a new 'take or pay' model.
Similarly, PPA will be conducted immediately for power projects with a capacity of less than 10 megawatts and a legal arrangement will be made to allow the private sector to trade electricity in the international market.
To encourage the private sector in the development of large and reservoir-based projects, the government has put forward a policy that allows the promoter to sell up to 40 per cent of the shares to the general public in the first year if the promoter ensures 100 per cent investment for such projects.
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