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In a landmark move to liberalize Nepal’s electricity sector, the Electricity Regulatory Commission (ERC) has approved a draft of a directive that allows the private sector to participate in electricity trading through open access to the power grid. The 276th board meeting of the EC took the decision on Wednesday. 

The new directive proposes allowing private producers and traders to buy and sell electricity within Nepal or export it abroad without relying solely on the Nepal Electricity Authority (NEA) for power purchase agreements. Open access refers to the provision that enables producers, power traders, and large consumers to use the national transmission and distribution infrastructure without discrimination. As per the guidelines, a wheeling charge of 39 paisa per unit has been proposed for the short term access to the power grid. Similarly, a monthly wheeling charge of Rs 283,842 per MW has been proposed for the mid-term and long-term access.

Under the proposed guideline, the minimum transaction threshold for domestic consumption is set at 5 MW, while cross-border trade requires a minimum of 10 MW.  The directive aims to reduce risks faced by electricity suppliers, enhance investor confidence and encourage infrastructure development by engaging the private sector in electricity trade. Open access is also expected to pave the way for a wholesale electricity market in Nepal.

The budget for the upcoming fiscal year 2025/26 has introduced ‘take and pay’ provision for power purchase agreement (PPA) instead of ‘take or pay’. Independent power producers have opposed the provision. However, Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel said in the parliament that the decision to enforce ‘take and pay’ provision was aimed at involving the private sector in the electricity trade.

The ERC has also laid out eligibility criteria for open access users. As per the draft guidelines hydropower plants with a capacity of at least 5 MW connected to a 33 kV or higher grid, captive plants with a minimum of 1 MW capacity, and industrial or commercial consumers meeting similar standards are eligible to participate in electricity trade. Applicants must also hold a distribution or trading license.

The guidelines have categorized electricity trading contracts through open access into three categories—short-term (from 24 hours up to one year), mid-term (more than one year to up to five-years) and long-term (more than five-years). However, the draft guidelines clearly state that traders can export electricity only when domestic consumption and demand have been met. Projects permitted by the government or those exporting through NEA are exempt from this requirement.

The directive designates NEA’s System Operations Department as the nodal agency for implementing. The Department will have to publish detailed procedures and agreement drafts within 120 days of the approval of the directive. The ERC will also have to prepare additional regulatory frameworks such as metering codes, deviation settlement mechanisms and grid connectivity directives.

The price of gold has dropped by Rs 800 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 194, 700 per tola today. It was traded at Rs 195, 500 per tola on Thursday..

Similarly, the price of silver has dropped by 50 and is being traded at Rs 2, 150 per tola today.

The 9th China-South Asia Exposition kicked off in Kunming, the capital city of Yunnan Province in China, on Thursday.

The Exposition was organized by the Ministry of Commerce of China and Foreign Affairs Office of the People’s Government of Yunnan Province.

During the event, Nepali Ambassador to China Krishna Prasad Oli addressed the opening ceremony of the 6^th China South Asia Cooperation Forum hosted by the Ministry of Foreign Affairs of China and the Foreign Affairs Office of Yunnan Province under the theme “Join Hands for Open and Inclusive Development.”

He underscored the importance of the Forum as a key platform for strengthening regional exchanges and mutual benefits between China and South Asia, reads a statement issued by the Nepali Embassy in Beijing.  

Ambassador Oli highlighted the vast potentials of South Asia, pointing out its shared commonalities including natural resources, cultural diversity, vibrant markets and huge workforce as important components making mutual cooperation and collaboration essential in the region.

He also expressed his satisfaction over the extensive, deep rooted and multifaceted relationship between Nepal and China.

With 2025 marking the 70^th anniversary of bilateral relations between Nepal and China, he emphasized the need of further fostering cooperation in the fields such as trade, investment, tourism, energy, agriculture, ICT, industry, connectivity, health, and education, according to the statement.

He also called for continued support of China in Nepal’s efforts of transforming from a landlocked country to a land-linked country.

The Birgunj Inland Revenue Office has collected more than Rs 8.52 billion in revenue in the first 11 months of the current fiscal year 2081/82 BS.

The collection is more than the Office's target.

During the review period, the Office was expected to collect slightly more than Rs 7.51 billion. 

Chief Tax Officer of the Birgunj Inland Revenue Office, Tikaraj Chaulagain, said the Office collected 113.36 percent of the total target set for the first 11 months of the running fiscal year. 

According to the Office, the highest amount of the collection was received from the excise duty, which is Rs 4.5 billion.

Likewise, Rs 2.55 billion was collected under the income tax while Rs 251 million was received from the house rental tax. 

Similarly, Rs 1.83 billion was collected against the target of Rs 2.22 billion under the heading of the value added tax (VAT) during the first 11 months of the current fiscal year, according to the Birgunj Inland Revenue Office.