February 2, 2023, Thursday
Nepal 1:37:26 pm

Electricity tariff on CREEs need revision

18th NACEUN Establishment Day

The Nepal Weekly
August 2, 2022

Energy experts, professional and campaigners argued that Nepal Government and Nepal Electricity Authority (NEA) need to consider on the price of electricity service provided for irrigation and drinking water purposes as the community electrification system has to pay at a flat rate while NEA as per the Nepal Government directives charge subsidised per unit cost for irrigation and drinking water purposes. The poor users also require to have provided a justifiable subsidised electricity service reforming the 20 units free of cost which is still making poor consumers pay some money in name of service charge. 

They also argue that community electrification system was introduced to be operationalized through community organisations – – Community Rural Electricity Entities (CREEs). That was successful in extending national grid to the consumers beyond NEA network in the far flung rural settings. The beneficiaries so far have been count to 535,000 households. As such the institution and CREEs have provided access of electricity to a significant share of consumers that is said to have been 94% of total population.

The speakers were focusing the subject matter celebrating 18thNACEUN Establishment Day on Wednesday.

On the occasion, member of National Planning Commission Prof. Surendra Labh, Former Minister for Water Resources Dipak Gyawali, Joint Secretary at Ministry of Energy, Water Resources and Irrigation Madhu Bhetwal, Electricity Regulatory Commission chairperson Dilli Bhadur Singh, Executive Director of Alternative Energy Promotion Centre Dr. Madhusudhan Adhikari, Deputy Managing Director of Nepal Electricity Authority Manoj Silwal and founder president of NACEUN Dilli Ghimire spoke on different aspects related to community electrification and electric cooking campaigns. The event was presided over by Narayan Gyawali, president of NACEUN 

NACEUN is a national federation of Community Rural Electricity Entities (CREEs). Since its establishment in 2005 under the NGO registration act, NACEUN has grown into a strong network comprising of over 300+ CREEs from 54 districts in Nepal. There are 17 district chapters and 6 province chapters of NACEUN.

Currently, 535,000 households have been electrified by these community rural electrification programs. Likewise, 150,000 additional households will have electricity access after completion of under-construction projects in different districts. We are committed to ensuring a future where every Nepali, irrespective of caste, gender, and position in the community has access to clean, affordable, and reliable electricity and the members benefit from its productive end-use.

The Community Rural Electricity Entities (CREEs) are formed under the enthusiastic participation of the community.  The infrastructure for electrification is constructed with a share contribution of 10% out of the total estimated budget by the CREE, and the remaining 90% by the NEA. The CREEs regulate electricity distribution services to their consumers independently after the infrastructure is handed over to them. These CREEs buy electricity from NEA in bulk, and distribute it to remote consumers. This allows the locals to get connected to technologies thus opening a gateway to better local employment that ultimately contributes to the GDP of the country.