Rule 6
Fixation Of Tariff And Other Charges
(1) The Commission while fixing the electricity tariff and other charges pursuant to Sub-section (3) of Section 17 of the Act, shall fix it on the basis of the rate of depreciation, reasonable profit, mode of the operation of the plant, changes in consumer’s price index, royalty and the policy adopted by Government of Nepal in relation to development of electricity etc. The marginal cost of the electricity generation, the exchange rate of convertible foreign currency, cost of the fuel to be used for the production of electricity and the financial agreement entered between the licensee and the financial institution providing loan or investing capital in the concerned electricity
project shall also be taken as basis while fixing tariff in this way.
Provided that, while fixing electricity made available tariff and other charges of the electricity provided by Government of Nepal itself or by the corporate body upon which Government of Nepal has share investment of more
than 50 percent, the Commission shall fix the tariff and other charges in a way of abiding the financial arrangement entered by Government of Nepal or by such corporate body with the financial institutions in relation to the concerned electricity project. In case the cost of the fuel to be used in the production of electricity ♦
or consumer price index is changed, the commission shall also fix the appropriate formula for changing the rate of tariff on the proportion of change in the cost of fuel or consumer price index, on the basis of which Government of
Amended by second amendment .
♦
Inserted by the third Amendment .
Nepal or such corporate body shall change themselves in the tariff structure, accordingly while making changes in the electricity tariff, ♦ the Commission may
♦
change it not exceeding more than five percent in the prevailing Electricity Tariff and only once a year.
(2) While determining electricity tariff rate and other charges pursuant to Sub-rule (1), the Commission may fix the tariff rate and other charges taking into consideration of the types of consumers, social liability, cross subsidies and
including potential for demand side management.
(3) While fixing or reviewing electricity tariff rate and other charges pursuant to Sub-section (1) and (2), the commission may give attention also over the organizational efficiency of the licensee.
project shall also be taken as basis while fixing tariff in this way.
Provided that, while fixing electricity made available tariff and other charges of the electricity provided by Government of Nepal itself or by the corporate body upon which Government of Nepal has share investment of more
than 50 percent, the Commission shall fix the tariff and other charges in a way of abiding the financial arrangement entered by Government of Nepal or by such corporate body with the financial institutions in relation to the concerned electricity project. In case the cost of the fuel to be used in the production of electricity ♦
or consumer price index is changed, the commission shall also fix the appropriate formula for changing the rate of tariff on the proportion of change in the cost of fuel or consumer price index, on the basis of which Government of
Amended by second amendment .
♦
Inserted by the third Amendment .
Nepal or such corporate body shall change themselves in the tariff structure, accordingly while making changes in the electricity tariff, ♦ the Commission may
♦
change it not exceeding more than five percent in the prevailing Electricity Tariff and only once a year.
(2) While determining electricity tariff rate and other charges pursuant to Sub-rule (1), the Commission may fix the tariff rate and other charges taking into consideration of the types of consumers, social liability, cross subsidies and
including potential for demand side management.
(3) While fixing or reviewing electricity tariff rate and other charges pursuant to Sub-section (1) and (2), the commission may give attention also over the organizational efficiency of the licensee.