In line with the ruling alliance’s Common Minimum Programme (CMP) unveiled last week, the government has placed high priority on the development of energy and irrigation sectors in view of their vital roles in reducing poverty and ensuring food security in the country. It has adopted a policy of offering free electricity to the households consuming up to 20 units a month.

The Ministry of Energy, Water Resources and Irrigation said the decision regarding this would come into effect within a month. Earlier, the Board of Directors of Nepal Electricity Authority (NEA) had taken the decision to this effect. The decision, however, requires to be endorsed by the Electricity Regulatory Commission.

Once this decision comes into force, the households using less than 20 units of electricity a month will have to pay only a demand fee of Rs. 30. The ministry hopes that some two million poor households across the nation will stand to reap the benefit from this novel scheme.

Another major policy shift is that the farmers will be entitled to receive up to 80 per cent concession on electricity tariffs for using the energy to irrigate their farmlands. If they use the electricity in the irrigation systems like shallow tube-well in other than the peak hour, they will get 100 per cent waiver. When this provision is applicable, about 388,000 households are going to benefit.

This arrangement is expected to spur a growth in the agriculture sector and contribute to making the country self-sufficient in the production of food grains and fruits.

In addition, the Ministry of Energy, Water Resources and Irrigation has also come up with a concrete plan to boost hydropower generation and encourage people to consume more electricity. Under this plan, it is in the process of slashing per unit electricity tariff to Rs. 11. This will motivate consumers to use electricity for cooking at the household level thereby reducing the use of LP gas.

Though Nepal possesses vast water resources with a tremendous scope for generating hydroelectricity, the country has been unable to tap such resources accordingly. The demand for this clean energy in the country has been increasing annually. At present, its demand stands at about 1,500 megawatt while around 1,300 megawatt is generated within the country.

The country is bound to import some 200 megawatt of electricity from India. There was a time when the country had to reel from as many as 18 hours’ power-cut daily. That was detrimental to the economic as well as social sectors. Amidst such a scenario, the ministry has decided to step up necessary measures to deal with the pertinent issues related to hydropower.

It needs no mention that Nepal heavily imports fossil fuels such as petroleum products and cooking gas.

This is not only widening our foreign trade deficit but also posing a serious threat to the environment.

Fossil fuels are a major source of harmful gases such as carbon dioxide that lead to air pollution and global warming.

Taking this into serious consideration, the ministry has decided to put forward a plan to complete the construction of 50 charging stations within this fiscal year as it aims to promote electric vehicles. Minister for Energy, Water Resources and Irrigation Pampha Bhusal has said that her ministry and subordinate offices would now onwards buy only electric vehicles.

The ministry is also working to install alternative energy systems in all the districts within the next two years.