Kathmandu – A government formed committee has recommended that the private sector be allowed to participate in electricity trade in Nepal. The recommendation was submitted to Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, by the Electricity Trade Study and Recommendation Committee led by former Energy Secretary Dinesh Kumar Ghimire.

The committee, formed on July 10 with the mandate to study electricity trade including private sector involvement, concluded that private companies should also be granted licenses for electricity trading.

According to the report, the private sector has played a significant role in electricity generation in Nepal. However, its contribution has so far been limited to production. The committee noted that involving private entities in electricity trade has become necessary to further develop the energy sector.

The report highlighted that the absence of adequate legal provisions has prevented private participation in electricity trading until now. It mentioned that the Electricity Regulatory Commission Act, 2017 already provides a regulatory framework for licensed entities, while the Electricity Bill, 2080 BS , currently under consideration in the federal parliament, seeks to amend and integrate existing laws to address electricity trade more comprehensively.

With rising electricity production, the committee stressed that involving the private sector in electricity trading is essential to manage domestic demand and supply, as well as to export surplus electricity to neighboring countries.